Q: What is your thoughts on Q3 results. The cash flow generation seems big and the new analyst targets seem encouraging and net debt is down alot.
5i Research Answer:
EPS of -4c matched estimates. Sales of $61M were marginally lower (0.19%) than expected. EBITDA of $11.15M were 3.7% better than estimates. Debt is down about $10M from the fiscal year end. Revenue did decline 3%. But operating cash flow rose 121%. Service revenue is now 82% of total. Guidance was mostly affirmed, but 'tightened up' within a narrow range. The CEO said he was 'exceptionally pleased'. The stock has had a good run. The quarter was not perfect, and we would likely to see sales growth, of course. But there are encouraging signs here, nonetheless and the company is getting things back under control.