DRX was VERY cheap and due for a bounce, and the results provided the needed catalyst. EPS of 30c compared with 47c last year (no estimates). Revenue of $55.5M fell sharply from $107.4M. Revenue plunged due to the uncertainty of tariffs which resulted in contract delays and a delay in fabrication hours in the US that are unrecoverable. But, investors looked at the gain in the backlog, to $330M, from $293M, as a sign that the tariff issue should just be temporary. The company says the backlog paves the way for higher revenue and profit in the second half of the year. It is also doing things like work-sharing to minimize the impact in the short term. One quarter does not make a trend, but it was very encouraging news overall, and the valuation of 7X remains very cheap for interested value investors.
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