Q: Any comment on earnings and looking foward
5i Research Answer:
STC reported a net loss of $(0.10) per share compared to a loss of $(0.08) per share last year. Revenue was flat on a yearly basis for the quarter, coming in at $62.3M. Services revenue rose to $50.70M, representing 81% of total revenue in Q2 while products revenue was down. STC finished the quarter with net cash provided by operating activities of $9.19M and a cash balance of $10.56M highlighting the company's continued strong balance sheet and ability to generate cash. There was nothing significant from STC this quarter, as losses widened slightly, but the company is generating cash nicely and the balance sheet appears to be improving. We think that STC could offer some nice value trading very cheap at 0.5x forward sales.