I was a bit disappointed, primarily because the licensing revenue was pretty much flat. Interested in looking at the 10-Q for more detail on the business breakdown.
The fact that they made a $500K investment last year and are impairing $400K of it a year later is entirely unacceptable when the market is ripping and the economy is recovering. Considering they are sitting on a pile of cash and not doing anything with it, its disturbing that when they do make an investment with it, it blows up in their/our face.
What's disturbing to me is the idea of a dividend being paid so Uncle Sam can rape me for 40% of it. The 10 million dollar investment they made to buy back shares in the dutch offer at $22 is not looking to shabby in terms of return right now, so I'll live with the 400k impairment. The branded product growth and new packaging deal are the keys, and this story is still well intact IMHO.
It's a so-so earnings report. I was hoping for higher revenue growth at franchises and company owned stores in particular. This is the key. Gross margins down slightly. Hopefully, the stock can hang in there without too much profit taking.