Q: Your thoughts about the latest results please . do you consider them a buy , sell or hold ?
5i Research Answer:
Revenue fell 7.3% to $36.7M and missed estimates of $37.4M. Earnings and EBITDA fell sharply from last year. The company settles the Sanbox litigation and this was a cost in the quarter. LMS distribution deferrals was also an issue, as were lower reset rates. On the plus side, debt was lowered and the payout ratio was only 60%, and should be less than 70% for the full year. Not great results, but not really the disaster the market seems to indicate. We think it remains buyable, keeping in mind small cap and market risks.