they need to raise cash asap. i know they were confusing on the call, and the guy who asked the question seemed to take their answer as "we dont need to raise cash immediately," but i think that was just wishful thinking on his part (or maybe framing the answer in order to stop the bleed in the shares and start hitting bids).
but forget impressions from the call or marblemouthed mgmt answers. the numbers are there for everyone to see. they burned 3 mln from non-one time things in the q. even assuming they grow rev 20% seq, that's another 1.4mln of rev at 55%gm, that's call it 800k of additional net income, assuming no incremental opex (ie sales commish, etc). so cash burn will be 2.2 mln this q. they only had 1.8mln coming in. they probably will raise 6-10mln or so to get them to break-even (considering they need to have some margin of safety...especially after raising $6mln a few months ago and almost being out of cash today). that's 10-15mln more shares. that's 30-40 days average volume. this stock will get to the $0.30 range...sure most of you guys dont remember death spiral converts, but for those of you who do, this is pretty similar...not structural like those were, but public co's that need cash asap unfort tend to go down, hard.
i have never had a posiiton in this stock (and never will, too small to short and this wont get bought, or if it does, will be in the 10-15mln mkt cap range, or at soon-to-be sharecount...10c). i simply hate aurin_res and that's why i'm posting this.
"they need to raise cash asap. i know they were confusing on the call" HB sounded way too much like Arena in my humble opine - dancing around the issue - then saying they had adequate capital. So, either 1. The IP that is currently for sale (geos, jagtag) has a taker or a flat out buyout by another company (qcom) is imminent, 2. The company is seeing meteor like rise in revenue and will be cash flow positive before the 1.8 million expires, or 3. He's lying.......I think Roth capital is here for one reason - another secondary's a comin'. Not a happy camper today.
Lets all be objective here for just one second (and I promise not to even talk about the one hit wonders I've seen on the board today).
The Company TOLD us there was a money raising event coming on the LAST cc.....what changed?
The company told us they were expecting 15%-20% growth and they delivered. Had they delivered 25% growth, I personally don't think that would have changed too much, given the opening comments were about shoring up the balance sheet.
They answered the backlog question as far as I'm concerned.
So what happened?? The stock got ahead of itself with a 60% run up into earnings???