Q: Dear 5i team.
Please provide your updated views on ILLM after the August 8 results. I see from recent Q+A, looks like one to throw the towel in on as prospects for recovery of SP not looking great. Is that a correct read of the current situation and near future with this co?
Many thanks for your help.
Please provide your updated views on ILLM after the August 8 results. I see from recent Q+A, looks like one to throw the towel in on as prospects for recovery of SP not looking great. Is that a correct read of the current situation and near future with this co?
Many thanks for your help.
5i Research Answer:
ILLM missed estimates again, with revenue at $29M vs $30M expected. Revenue also declined, which we never like to see. Margins were maintained. It is stll losing money, but a profit is expected in 2025. Cash flow (12 months) is positive and it is still buying back stock. With its small size and weak performance investors are yawning here. Its main attraction now is cash (about $44M, about half the market cap). But for a stock that was $32 barely three years ago, there has been a lot of pain for shareholders. The outlook, while marginally improving, is not enough to entice a hold recommendation and we would be fine moving on.