Check the headlines, it's an SEC filings. Anyone have insights on whether this is good or bad? I don't know much about this so I have no idea. Is this the news I have been waiting for that justifies this brutal sell off? Is Procera revenue going to take a hit? I knew there was something that would eventually come out, just wondering if this is what it is.
"Our target price of $16 represents an EV/2013 sales multiple of 2.5x. Risks to our
target price include a highly competitive landscape, an uncertain regulatory
environment surrounding network neutrality, Procera's ability to maintain its
technology leadership, and its software license agreement with GENBAND."
They cite losing this agreement as a risk factor. So why do you think tihs is no big deal? Is this perhaps a reason for this brutal, never ending sell off? And a reason as to why PKT's valuation pales in comparison to even ALLT?
Something isn't adding up, and perhaps this is a good place to start.
Reading the Stifel piece I also noticed this:
"We believe that the full year estimates are conservative and there is a likelihood that as the
company wins deals through the course of 1H, management raises it full year guidance at the mid point of the year."
Wins deals throughout 1H? We haven't had hardly any win announcements at all this year. Nothing in 2 months. So I would have to say that raised guidance will NOT be happening.
Is it time for more Stock awards for Brear??? The stock was higher in 2011........he deserves millions.
Vineyard Acquisition / OEM Platform in house makes Genband Relationship disposable especially based on 2010 terms , Procera is a larger stronger Company today with many more options ; Genband did not produce . They were the source of several quality referrals , relationship with them will be maintained as a Reseller. Company has been in a complete blackout period from 2 weeks from end of quarter middle of March until earning release which includes unfortunately News Releases there is a chance based on Board Resignation that was a bone of contention time shall tell if we hear something before hand. Historically Procera was always comfortable releasing news over this period of time something changed in house which put someone in a position of influence within Procera's Board that has mandated this new approach / lack of communication over this period of time, not happy obviously with Companies new approach not to communicate. " We haven't had hardly any win announcements at all this year. Nothing in 2 months. So I would have to say that raised guidance will NOT be happening "
pk this relationship was established several years ago with high expectations. Procera has moved on from Genband long ago , Vineyard is their vehicle of choice for primary OEM Relationships , Genband will maintain a relationship as a reseller. I do agree and share your frustration , it is obvious that Procera is in a 100% new release blackout since last earnings release. Resignation of director and news this morning on Genband is not the type of news that engenders confidence . Hopefully starting next week Procera will address atrophying currency with some meat on the bone positive business releases , time shall tell.
How could they announce any wins if they were in a 100% blackout period from the end of last quarter up until this next earnings release. That does not mean they didn't win any it just means for whatever reason they agreed not to make any announcements for the entire quarter. I assume this was the idea of Huebner, this was the bone and contention and this is why she resigned. I doubt they will stick with this policy. Hopefully there were some wins and we will see that announced with the earnings announcement. I have to also assume they are discussing a buyback and hopefully that is something we see as well