Q: Please comment on most recent quarter.
Thanks,
Thanks,
5i Research Answer:
EPS of 13c missed estimates of 18c; revenue of $111.6M missed estimates of $121M. EBITDA of $17M missed estimates by 21%. Cash is $91M. Revenue fell 11% year over year, EPS fell 35%. Gross margin did rise. Cash flow was $22.3M, well down from $60M. Backlog was $302M. It is a pretty big miss, and the revenue decline is somewhat worrying. This is the second quarterly 'miss' and we do not like the trend here. The valuation and dividend make the stock more interesting, but not really enough to get excited about. We would not suggest selling into this earnings panic, but a view to exit we think makes sense until ET can turn around revenue.