Q: why the drop? weak forecast? would you hold or move on?
JR
JR
5i Research Answer:
EPS of 7c was ahead of estimates and sales of $42M was inline. But EBITDA of $3M missed estimates by 34%. Guidance was maintained. An OK quarter, but investors seem concerned on growth and customer concentration. Three customers account for nearly all revenue and all are somewhat economically-sensitive. The stock has had a big run and much of the drop was likely profit taking. It is expensive but with the drop embedded now we would be OK holding with the affirmed guidance.