...not expecting a real move until 2014 when we can see China, Brazil, and some EU contracts.. The idea is that if we get reasonably large move in 2014, adding contracts in 2015 will drive price into double digits...It is counterproductive to be expecting much before then..notice that Itron sitting on multi-year lows and ssni back to ipo levels...
"... Wouldn't be surprised if management announced a share buyback before the end of the year. ..."
I hate to be the naysayer, but Slakey himself was very clear in Q2/13 that a buyback program is not in the cards.
Rather, I'd be much more worried about a dilutive effect of a potential acquisition, which both Slakey and Sege did not exclude in Q2. See following response of Slakey in Q2. But, just to be clear, even if they can get venture capital to ramp up on their new IPv6 and wireless strategies, this does not necessarily imply dilution of the existing shareholders if the acquisition can generate revenues/earnings.
Pavel Molchanov - Raymond James & Associates, Inc., Research Division
Okay. And then secondly, your cash balance, as you noted, actually ticked up during the quarter, now close to $60 million, which is more than half of your market cap. And your stock, of course, is close to a 52-week low. So in that context, what are your thoughts about a buyback program?
William R. Slakey - Chief Financial Officer and Executive Vice President
Pavel, this is Bill. I think a buyback program right now is probably not the best use of the cash. I think instead what we need to do is focus on growth and we need to focus on finding growth potentially through acquisition.