5 cents per share? Not a great profit really and still too early to tell if this is on the way up or if it's yet another accounting smoke screen.
One thing they seemed to gloss over was the 6 million drop in the defered revenue pool. In the past it has been the strength of this pool that Mark has really pushed, now that figure is down on a like on like basis from last year.
Mark and co are pushing Accelrys to become a 'one stop shop' for informatics. Thing is, I work in the informatics industry and the customers are telling me that they don't want a one stop shop because many of them remember getting burned by MDL when MDL was the only choice for them.
The reduction in deferred revenue spells nothing but trouble here in the short-medium term. Closing Bangalore was clearly the smart thing to do, but since Emjker was the person who opened it in the first place, I can't see how he can take credit for this and I am beginning to question him some more as CEO.
I have a bunch of stock at $19 (thankfully none at the all time high of $104), but sadly I don�t see any chance of getting my money back.
Last week, a freind asked me what I thought about ACCL . My answer was: the company, and its business are mo good but the stock might do well in the short term. The stock , then in the mid 6's has proved me right. More so , however, the company's news release goes a long way to prove the veracity of the balance of the statement. Sure it shows a profit for the quarter but, deferred revenues are down more than $6 million, A/R down to $10.5 million and cash down by $2 million. What this predicts (i.e. unless they will be able to increase bookings significantly during the next three quarters) is that losses will soon follow. Furthermore, the cash balance which has been the support for the stock, might soon start to diminish as well. AND YET... the market reacts by a nicee increase on one of the worst days. Go figure! It proves that "investors" have littl or no understanding of the business of investee companies. But then, it might not matter. Does it?