Forecasts call for low revenue growth over the next three year : 2024 2.9%, 2025 8% and 2026 1%. EPS is expected to null this year, 2c next year, and 4c the year after. QUIS does have 8 analysts despite its small size. QUIS reported a loss from continuing operations that narrowed to $1.9M from $3.13M. Profit including discontinued operations was $7.45M, compared with a loss of $3.13M. Revenue from continuing operations was $29.62M declining 2% year-over-year. QUIS attributed the decline to, "reduced market demand within professional services revenue and the Company's corresponding reduction in revenue-generating headcount." QUIS did improve gross margins nicely to 42% from 39% in the year prior quarter as a result of its efforts to reduce headcount. The stock jumped following the earnings but we are not overly impressed here with revenue declining and the company even attributing 90% of first-half revenue to long-standing customers. High debt, a lack of profitability, and declining revenues are what have caused the stock to fall from its peak. Being a Microsoft Solutions partner really just means QUIS are experts in integrating/offering support on MSFT products. The company is shifting into an AI focus which will be full deployed in 2025 for which we would then revisit to see if there are any changes, but for now it is a sell.
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