Q: Hello, your thoughts on their latest results and is the stock a buy? Thanks.
5i Research Answer:
EPS of 9c beat estimates of 6c; revenue of $128M beat estimates of $123.1M. EBITDA of $16M matched estimates. Year forecast was maintained. A couple of brokers lowered targets. Revenue fell 6.4% with a large decline in Strategic Partners business with the closing of a contract. Gross margins declined. While this was a 'beat' versus expectations, debt remains too high for our comfortable level, considering the fairly big decline in growth vs prior year. We think buyers can wait.