Q: Could you comment on SWP most recent results. Do you think they have turned the corner.
5i Research Answer:
For Q4, SWP reported a decline in quarterly revenue coming in at $41.2M compared with $44M from the prior year. SWP did swing to a profit this quarter recording net profit off $1M, or $0.10 per share, compared with a net loss of $0.25M, or $(0.03) per share, in the prior year period. The company mentioned that the increased profit in the quarter was due to improved efficiencies while total sales volume did fall. While the profit swing was good and SWP is evidently expanding margins, we would not yet say they have turned the corner as the revenue trend in 2023 was negative and the company still recorded a full year net loss. We would watch SWP to see if it can sustain profitability along with positive revenue growth going forward.