Disconnect between growth and operating results for 2012 & share price is truely painful. " HUGE earnings miss " No not a Huge operating miss a 2 million dollar order that was shipped and installed that customer wanted very late in sales cycle to implement some additional capability. Procera communicated on conferience call that was one of a few instances in which they were unable to realize revenue in Q4 , that one Sale by itself is the difference between meeting expectations and , " HUGE earnings miss " . Market certainly is cruel and unforgiving regardless of circumstances. Near term headlines are sensationalized and reflect very poorly on this growth franchise discounting and marginalizing everything positive. Guidance , company clearly is very conservative and once again not managing this business currently for near term profitability there eye is on the future and they are very comfortable investing for the large payoff they c in the out quarters.
As disappointed as i am in the manner in which Procera is trading and the overall tone in which the market has reacted to Procera's earning release this is how i feel. Vineyard acquisition was a game changer & offers PKT a excellent opportunity to spread their wings & and become a dominant player in The Enterprise / OEM Market this does come at a cost. Reflecting on this comment by Lilly " did mgt realize , what they were going to do the shareholders with this type of report. Why are operating expenses so high as to create a loss. Is this mgt not capable of managing to a profit " Profits are important but what is more important is building a dominant franchise . For the most part with exception of Vineyard acquisition Procera is trying to accomplish this Organically . Vineyard appear to be a excellent acquisition that offers Procera two very important growth platforms to leverage off of ; management understands the markets they are serving and the internal demand on their personnel to accomplish this successfully. Procera is making investments today to sow the seeds of future growth. I obviously have no control on how the market reacts to this earning release / future guidance but i will tell you from my heart i am extremely pleased with the direction & growth this company delievered in 2012 . I defer to management and believe they are doing a excellent job managing & investing in their business for future growth. In the first half of of 2013 if they feel investing in their business is more important than delivering a profit i defer to their best judgement . The unfortunate disconnect coming out of this earning release is a Company that is executing at a very high level and whose best days are still in the future looks like it has stubbed their toe & business has decelerated . Company large cash position gives them a opportunity to invest for future gains , in the big picture it is not really important wheather they make or loose a few shekels in the 1st half of the year as opposed to investing in / building up and leveraging The Vineyard acquisition. This is a extreme analogy , there are companies out there that try and manage for profits such as Sears they invest nothing in their business and unfortunately are paying the price for it today the other extreme example is Amazon earning has not been a priority over last 10 year building a dominant franchise is. Market certainly seems very fickle & selective in reference to how it approached each sector / stock in reference to tolerance of respective business model. In Conclusion maybe management did a poor job of communicating to the street about the direction they intended to move. Being very conservative on the guidance i understand but clearly has added insult to injury.
Peter Cohen, you were stomping on me for pumping this company at 8 bucks. I sold at 17..Who's the pumper now??
An egregious 30% hit on 4m shares...there will be downgrades and margin calls galore now..Yer on ignore..
In Technology it is often tough to squeeze revenue out of sales predictions. This is not plug 'n play though the short terms will whine till the toads come home thinking they can do so. Booked sales and paid deals are often slow especially when it comes to this sort of stuff. So we wait another six months or so or we see someone who understands this business pounce on them and gobble them up. The latter is my biggest fear and they look vulnerable. No telling if the big guys have an appetite for them yet.