Q: What do you think of QIPT as a part of a small cap portfolio? Results just out today after hours show a 64% revenue increase, and adjusted EBITDA up 80%, now at 23% of revenue compared to 21% last year. Big improvement in bad debt expense, down from 9% of revenue to 4% of revenue.
5i Research Answer:
Results look fine, though we would note that most growth was from acquisitions (not necessarily a bad thing). Organic growth was 4%. Cash flow rose 42%. The balance sheet is fine and analysts expect EPS to triple next year. We may not want a big position here but as part of a small cap basket we think it has some attractions.