but the shares aren't exactly expensive so who knows where it goes.
Cash was generated as a result of collection of receivables. Means less cash in future but obviously lower receivables are something to be desired.
Audit still doesn't seem to be done. They must be struggling with systems issues due to new ERP system and staff cuts.
Gonna burn around $4 to $6 million in first quarter holding balance sheet items steady. I don't think they will make it to cash flow break-even for the year, doesn't seem close. Break even (cash flow, not GAAP) looks like it requires around $100 million a quarter.
They shouldn't be in any danger of bankruptcy but then again they aren't exactly on the verge of generating cash either.
Looks like $1.8 million GAAP. Adjusted EBITDA of negative 5.4 million strips out restructuring and non-cash expenses. They are fundamentally not close to break-even but I suppose sales could take off at some point in time.
Tough business. Too much capacity. Would be nice if someone or more than one would go bankrupt but that ain't gonna happen anytime soon.
Their CEO has always seems honest and straightforward. I'd be surprised if he tries to spin it in any fashion other than it is what it is but maybe they will try and sell some stock.
He is fudging a bit more than usual but overall much better than most CEOs who are all too comfortable lying to investors. They more or less said that they want consolidation so I think that means they are for sale or who knows, maybe they buy someone.
10-K is going to be late. Not the end of the world.
Would CRNT buy them? I don't think anyone has ever done an acquisition in this sector that was actually successful so I tend to think not but I certainly don't understand the difficulties of integrating the two companies product lines.
Yea they pumped a little but one should expect that to an extent. Didn't seem totally out of control to me.
He isn't a liar or an idiot so I tend to like him but there is no denying the poor performance. Not that anyone has done well.
Didn't sound super bullish to me. They clearly fudged on the cash generation for the quarter, they burned cash as ramping down receivables as a result of decreased sales (not DSO) is hardly generating cash. They also fudged on being cash flow break even for the first half of year. No one actually believes that do they???
I expect executives to fudge all over the place in calls so I kind of let it pass but I don't disengage my brain either.
The sale is interesting but it is pretty tough to do.
You forgot to mention that the ERP implementation is in trouble. Didn't really provide any feedback on how bad it is but it obviously isn't going swimmingly. Not many do but when you are doing it in the middle of staffing and budget cuts things can absolutely fall apart sometimes.
I just don't get Needham's upgrade. The only scenario I can see $2 is a bubble CRNT can't pay that much unless their share price went to $4 or $5 a share.
Who knows, maybe they think the cycle is going to be so strong they wind up being profitable. Hard to see that happening.
I think it was a combination of things. There is the article on the layoffs, the plan to re-file the rate decrease request and Century Aluminum has been skyrocketing.
It is tough to lose a job but I don't for a minute believe it was because of the rate decision. The company might say it is and they might have even agreed to keep the jobs if the subsidized rate had been provided but Apollo is out for Apollo and no one else. If they can do the job without someone they will do so and they will make those investments in the bootheel once clarity on the rate is provided. I hope the clarity is denial of any further rate reductions but we will see.
Should add that I would be fine with a rate reduction provided the price is tied to aluminum pricing. If ratepayers subsidize them they oughta get some upside.
Have not given it much thought but CRNT will have a mild breeze at their back on an operating basis as the Shekel as weakened against the dollar recently. Don't know what percentage of their costs are Shekel derived but know it isn't an immaterial amount.
Might add a million dollars to September quarter.
When there is no news, you gotta write about what you know about.
I don't know the answer to your questions but I'm confident that it isn't like this is a game changing deal. They have to do this sort of thing regularly in order to drive profitability. Besides, when people say a deal is a "game-changer" they want to sell you some stock.
This isn't a company that is sitting on assets with management siphoning off value. It is a company that likely has no no significant value where management has indicated that they are willing to sell.
Unfortunately, there has not been a single acquisition in the industries history that hasn't been a financial failure although they certainly have ranged from disastrous to merely not very good. If they are to be bought it will have to be cheap and Steel Partner's brings nothing to the table.