Q: Can you please comment on the earning and outlook?
5i Research Answer:
Sales fell 4% to $60.9M. EBITDA rose 2% to $11.1M. Net loss was $1.7M or 5c per share vs $23.6M or 72c per share in the same period last year. Gross margins rose to 70% from 68%. Sales were impacted by a shift away from lower margin sales and a decline in product revenue for the year. Cash flow was $11.7M. Guidance was largely in line with current estimates. Debt continues to come down, but is still a bit high at about 1.5X cash flow. While we would certainly like to see better sales growth, we would consider the quarter good. The stock sold off, but we think that was largely profit-taking. It is still up 83% for the year.