2013 bookings were estimated at $98M, which is 1.5X 2013 estimated billings of $65M. This would take bookings up to nearly $150M by year end. IMRS is not a 2013 story. Those looking for immediate gratification should look elsewhere.
William Blair reinstates coverage on Meru Networks (NASDAQ: MERU) with a Outperform.
Analyst Jason Ader said while the stock is speculative based on its small size and lack of profitability, he believes it "provides an attractive, low valuation avenue for playing the red-hot enterprise Wi-Fi market."
The analyst said shares are trading at a "heavily discounted" 2013 enterprise-value-to-sales multiple of 0.65 times. Peers like Aruba (Nasdaq: ARUN) and Ruckus (Nasdaq: RKUS), trade at 4.1 times and 6.3 times 2013 sales, respectively, he notes
sequestration, at least that's what I surmised from listening to the CC from last week. Next 2 quarters may be affected and they are increasing spending in the short term (longer term positive). I got out and will get back in at a later time.
1) My GM% est was for 2013 blended. High 60's later this year is a fair assumption.
2) My estimate of $120M this year is the high end of management's est given in CC (which was $110M to $120M). If your 8% est was right, I'd sell yesterday as that would only get 2013 revenue to $105M. You need to re-listen to the CC. The analysts have the est @ $115M (which is typical analyst behavior-picking the middle of mngt guidance).
3) Mngt stated in the CC that opex would come down nominally each quarter like it has in recent quarters. They have done a great job in limiting opex, something previous mngt proved incapable of doing.
I stand by my original post and assumptions.
0% chance of that happening now. Stock is down from $28 two years ago. Mngt would be crucified for selling out in single digits.
I assume $120MM in 2013 revenue (high end of estimate given on CC), 64% GM and $81MM in opex, resulting in 2013 net loss of $4M on a GAAP basis ($-.22 EPS). In 2014, revenue also increases by 21% to $145MM with GM increasing to 65% and opex increasing to $84MM (mngt has actually decreased opex each of the last 3 quarters and will do so again in Q1 per CC), resulting in net profit of $10MM, or EPS of $.50 on a GAAP basis. On a non-GAAP basis (which Wall Street uses), EPS would be $.90 in 2014 since non GAAP expenses run around $8MM per year. I apply a 20 multiple to get to $18.
Sentiment: Strong Buy
While KEM may pay off big in 2014 once all the restructuring and NEC acquisition is done, the balance of this year may be tough. 100% of those who purchased KEM in the last 12 months ($11.15 and under) are under water. Tax loss selling usually begins in September and runs thru late December. If this plays out as I suspect, a great value will exist aroung Xmas time.