Your opinion on both the results and the covenant issue would be most welcome.
Thanks folks!
True, extensions are never a great sign. Especially for a company that used to have a boatload of cash, and now has net debt of about $56M. The company has now had four years of losses, and cash flow was negative in the quarter. The restructuring should help, if the company can save $12M in costs. 12-month cash flow was about $6M, but interest costs were $9M last year. An improvement is certainly needed here. Sales rose slightly and beat estimates. But the loss of 8c a share missed estimates of -6c. EBITDA of negative $3.7M missed estimates of -$1.4M. All in, we have a very small company with some new financial risks, and a horrible record of creating value, no longer paying a dividend, with negative stock momentum, while most every other stock is doing well. It is very hard to endorse this on the 'hope' of a turnaround.