seemingly their margin targets have become unachievable with the current cost structure - a quite different statement than just three months ago. Obviously the company faces pricing pressure.
Doherty even upgraded the stock this morning - given the very weak trading pattern the shares look like a great short trade for the short to medium term
I wouldn't touch the shares here as they will be dead money for at least a few quarters. The poor US sales won't reverse anytime soon and mobile sales will remain a minor source of revenue for many quarters to come. So clearly the stock lacks catalysts going forward and even worse management warned about rising investments and ongoing losses in the near future.
For those who believe in management's longer term outlook for annual revenues of $200 mln within 4 to 6 years the stock might offer a cheaper entry here but I suspect it willl get even cheaper going forward.
yeah - I even believe the company is a fraud without having any evidence - just based on my impressions of the CEO and his big-mouthed projections. Where is the cash the business should generate each quarter with 80% gross margins ? Why do gross margins already tumble with the newer contracts not even started to add to revenue ? What will happen to the shares if qoq revenue growth remains in the low single million dollar range despite announced contracts above $50 mln ?
and clearly I should have kept the 15k shares I bought after the company announced the secondary in December instead of selling them for a somewhat tiny profit some days later - but given my view of the CEO's personality and the company as a whole I just did not have any faith to stay long.
gross margins down to 76%, cash flow just slighly improved - the company still has to deliver on its promises starting in Q3
They seemingly still have problems to convert backlog into revenues as evidenced by the uneven quarterly results. At least we know the break-even level for the company now - around $150 mln. Clearly the shares look inexpensive here but as long as the company fails to put up consistent profitable results each quarter the upside potential for the shares remains limited.
sure that's bs but no one should stay long the company as the equity looks worthless here and future capital raises might become impossible going forward.
order intake solid but also slightly lower than in Q1 - cash position more or less unchanged qoq
overall the results look certainly weaker than expected given the very good Q1 results - would expect the stock to have a weak day.
Actually I am already up a few thousand dollars on the short but I firmly expect to see the stock in the red today
VERY NICE GAIN HERE
not this time - the US business remains a mess and FY15 guidance was pretty uneventful to say the least - the stock should pretty much do nothing today at best
Some pretty arrogant comments on the call by the founder after being asked about mounting losses and cash burn won't get a warm reception by investors today. Obviously the CEO didn't notice that the market has stopped believing solely in the revenue metric for some time now. The share price will pay the bill today.
after hours high was $32 - and perhaps you might want to take a look at my track record by clicking on my postings. I don't claim that everything is going well but nine out of ten times I am right
analysts on the call were mostly disappointed with the ongoing poor performance of the US business which has struggled for several quarters now. That said I would still give management the benefit of the doubt here as the story remains unchanged.
this will most likely be down tomorrow as the stock looks pretty overextended here. Growth metrics are getting even more impressive but gross margin came down a whopping 5% qoq which clearly is a huge cause of concern. Buying revenues at the expense of margins might be a legitimate way for a company in the early innings to capture market share but the margin trade-in seems excessive here. Good results were expected by the way and looking at other Chinese growth stocks which reported great results as of late they were mostly down the following day. I am short 5k shares in after hours at $31.50 on average. Looking for $27 tomorrow morning
this will trade around $1.50 later today - listen to the call any you know why. Leaving the commercial space, running low on cash again, no forward guidance. Next quarter's revenues might come in around $15mln