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  5. DCM: Can you please provide some commentary on their previous quarter and update your outlook moving forward? [Data Communications Management Corp.]
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Q: Can you please provide some commentary on their previous quarter and update your outlook moving forward?

Thanks.
Asked by Adam on April 15, 2024
5i Research Answer:

Recent quarterly results included EPS of 2c missing estimates of 3.5c. Revenue also missed estimates of $130.07M coming in at $129.96M and displayed year over year growth of 78%. We will also note that the company only has 2 analysts so while the misses on expectations are not positive they should not be overstated. Management commentary from the earnings release was positive and the focus on driving efficiecies, scaling up the business, and reducing debt were good to see. Debt is still high and margins did take a dip in 2023 (but did improve in in Q4). We like the growth DCM has displayed but we have our hangups on the high debt and lower margins in 2023. We continue to think it is a decent small cap name, and the integration of its new acquisition along with meeting strategic priorities will be key for success in 2024.