Q: how do you view the latest earnings? on the surface they seem poor given the lumpiness of their Wi-Lan division. With a search for a new CEO on, and dividend cut, things don't look so good but I do see a healthy $500 million backlog in their electronic road tolling division. I would consider this a hold esp given their $57 million cash on hand. What is your opinion?
5i Research Answer:
While the cash provides a cushion, losses can eat away this over time. It is not all bad, but with the small size of the company, horrible performance and now no dividend, investors need a reason to buy. It is not going to be from this quarter, with such a big drop in revenue. Uncertainty remains, and uncertainty hurts stocks. It seems every quarter there is a new problem with this stock, and with lots of other cheap small caps we can't give it an endorsement after years of frustration and destruction of shareholder value.