Q2 demonstrated improvement in gross margins and reduce operating expenses and the net loss by more than 50% versus Q2/12. Revenues increased nearly $700 K versus Q1/13. Together with the $500 K, KOOL received at the end of Q2 divestitures have generated … a total of $3.5 M in cash with $2.5 M received in the last 6 months. Restructuring and streamlining initiatives have reduced operating and overhead expenses by more than $2 M annually. Their cash position is good … compared to the past … so expect KOOL to pick up the price appreciation to above the NASDAQ limit of $1.00. On 11/15/12, KOOL received a notice from the NASDAQ notifying them that for 30 consecutive business days and have been provided with 180 calendar days (until 5/14/13) to regain compliance. The key will be breaking beyond the 50 day moving average of $0.93 and the comparable 200 day of $0.93. Momentum has been slow due to moderate volume which has been well below the 10 day numbers. KOOL had 1 day of compliance since 1/2/13. Ranking – BUY and a target pricing of $1.10 to $1.20 in the next 6 months.
KOOL closed at $0.98, down $0.01 or -0.61%.