You do realize that using cash to pay off A/P does nothing to improve the current ratio? Do the math.
Working capital will improve over time. They are less than a year away from being debt free...there goes ~$2.3M in current liabilities. They should generate about $1M a quarter in operating cash flow. I'm not worried about working capital.
Well, they have to pay the earn out early in 2012...that is $2M. I suspect they don't buyback shares in great numbers until that is paid off and they have a comfortable level of cash to run the business...I don't know what that number is. If all continues to go well I would say by the second half of 2012 they should be able to start buying back shares at a nice clip.