The margins were only temporarily squeezed by costs related to the move to the new building and inefficiencies caused by massive growth. They should put both in the rear view mirror soon. Then it's just a matter of how much they can earn on $140-170 million of revenues. They have guided in the past that a 5-6% net income margin would be normal. This company has had a lot of costs to reach the scale they need, but I believe you will see most of that behind them starting this quarter.
That is way more than I thought. EDUC had a lot of non-recurring costs last quarter causing a small loss. These include moving costs and tons of overtime. But the future looks bright, and growth is well beyond what I had guessed. They will probably earn $2.00 this year.
It wasn't the dilution that did ANYTHING. The price declined due to the lower backlog. However, management has re-iterated revenue guidance.
Your not kidding, I mean like five different directors made large purchases at the market. And its still going on, we may get more.
The amount of increase in the shares was probably due to conversions to stock. The author did not insinuate that the diluted amount of the shares went up. That's what matters.
There are always going to be a few exceptions, but when your malls are full of Sears, JCPenney, Bon Ton and Macy's, you are going to lose large tenants. And I haven't even started on the smaller ones.
Added to my short position. All of the stores I mentioned above plus Gap, Nordstrom and many more mall stores are now really getting hit by the move online. Demand for mall space is going to quickly drop.
Yes, I think the lower backlog was the cause of the selling. Management reiterated its revenue guidance of $100 million so this may just be a seasonal drop. The 30% gross margin was guided for last quarter.
Not concerned with the drop in cash, growth companies consume cash. It all went to the right place, inventory, A/R and costs in excess of billings.
Earnings as expected. This was their seasonally slowest quarter so it should pick up from here. A little concerned about the drop in backlog but management is reiterating revenue guidance of at least $100 million, and backlog had jumped an unnatural amount last quarter.
SUNE, VSLR and SCTY. SUNE wasn't a direct competitor, it was a supplier that went bankrupt. VSLR is a direct competitor to SUNW and has had quite a falloff of growth they blame on the failed merger with SUNE. Their problems appear company specific. They are even moving SUNW way by starting to do some selling instead of leasing. SCTY is also a direct competitor and is still growing like a weed. The issue there is, can they be profitable? SUNW has a much better business model. Earnings out tomorrow. Hopefully they will help SUNW differentiate itself from SCTY and VSLR.
The biggest stock pops happen on a reversal of trend. This was a big swing, and all those shares short just adds fuel to the fire.
It also means Q4 is up again from Q3. The momentum continues. We are probably $0.10-012 EPS in Q4 as revenues are increasing but operating expenses are not.
Yes, this is good. The revenue and earnings results are no longer an anomaly. It's now an established trend. And the big contract is still ramping up. What I also like is operating e penses are flat, so additional revenues mostly fall to the bottom line.
I agree, $5 is my price target. The last earnings gets GNW back to where it was last fall when it was $5. I also expect it to hit resistance there.
While I am long, I am not as bullish on next earnings. The big contract started last quarter, but doesn't really get up and going until later this year. The NTSL earnings were similar to last Spetember's quarter. Things should really get moving in 6-12 months.
Brillo, there are certainly issues with NTWK but lack of analyst coverage is not one. Few companies under $100 million in revenues have analyst coverage.