Q: Can you comment on Syz earnings. Looked good but did they match expectations. What stands out both on positive and negative sides. Is it a good time to add to position?
5i Research Answer:
Revenue of $15.9M was 1.5% short of estimates. Bloomberg does not show EPS estimates (only three analysts). Revenue rose 21%; recurring revenue rose 8%. Backlog is $28.9M. The balance sheet remains net debt free with $10M cash. GAAP earnings did show a decline to (nil) from 4c per share last year. On the positive side, EBITDA margins were good at 26%, and overall sales growth was solid. Offsetting this was higher SG&A expenses, higher stock compensation charges and higher professional fees. The stock is doing well, and we think it is buyable, but would keep position size reflective of small cap and sector risks. We would not add to a weighting on these results alone.