VASO
I brought waaaaaaaaaaaaaaaaaay more VASO today. I know everyone was disappointed, but to me after the CC I never been more excited.
First of all their was 102k income tax expense in the numbers. They are not paying taxes in reality anytime soon. Also keep in mind on and adjusted ebitda level amortization expense was waaaaaaaaaaay higher due to acquisition.
The backlog on their new unit is doing incredibly well as business expected to continue to ramp up, this is the first quarter they show real revs at about 500k.
Netwolves continues to grow up 17% y/y on the revenue front.
Their was also a 400k one time bad debt expense on the equipment sales front, with that and the income tax expense, NI would of been around 500k for seasonally weak q1 which is rather impressive.
More importantly their equipment unit had a -300k in operating income exing out the charge, now that doesn't sound great but this unit lost 2.4 last year, they expect to get closer to break even as the year goes on. That would be a big boost to the bottom line.
So In conclusion we have are cash cow business that is very profitable, we have netwolves growing, we have a new business unit starting to ramp up, and the equipment sales unit is mitigating bottom line losses. All is all I expect about adjusted earnings of .04-.05 in fy 2016, I think the stock is worth double current prices, and this quarter was brilliant, my only knock is why did it have to brought up in the Q + A it should of been in the pr and the prepared remarks that 400k one time expense is a big difference on how the quarter looks in my opinion. All is just my opinion, and I could always be wrong though.
