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There any sales and bottom line targets that you have in mind to be looking for this quarter?
Am I remembering correctly that on the last cc, they said something to the effect that some meaningful international orders could be “a few weeks” to “6 months” away? Something to the point that they had been promised contracts that hadn’t been signed yet.
If nothing is showing up by the August call, is the Hawei us-China issue going to be the excuse?
Volume has gotten back to being almost nothing. So I don’t think this is really selling as much as were back to zero buying interest and the MMs are doing their thing.
I would think the sale of accounts receivables are indicating something positive. But it’s also within the realm of possibility that it reflects that the company dropping the ball again. Orders just aren’t coming in the way they expected, they already committed to expenses and they are desperate for cash trying to buy some more time.
They don’t exactly have a record of executing. So while I’m optimistic this is a good sign, until they prove it with some numbers, we still aren’t going anywhere.
Well I’m looking forward to August. Sure would be nice to get a solid “beat” for change.
Thanks for grabbing those.
And is it net 90? That’s what I though I recalled hearing or reading somewhere but I didn’t just see that. If they still have net 60 that would be even better news here wrt sales numbers.
But even with net 90, unless they are very desperate for cash or its part of the agreement with citi that they have to sell everything, then I don’t se why they would sell receivables that are due within the next couple weeks. If that’s the case then their total receivables from AT&T should be some amount greater than what was sold.
On the credit facility pr:
“On June 10, 2019, the Company received $5.2 million in connection with the sale of certain accounts receivable to Citibank pursuant to the terms of the agreement, which amout will be used to support the Company’s working capital needs.
Under the agreement, the Company may from time to time offer to sell to Citibank certain of the Company’s accounts receivable relating to invoiced sales made by the Company to its largest Tier-1 telecom customer and its affiliates.”
So it’s only a facility that is useful for their largest tier 1 (AT&T), and at $5.2 million and doing so in June 10 (over 2/3 through the quarter), and 90 day pay period for receivables? does this mean that roughly speaking, they did at least $5.2 million with just AT&T for the quarter thus far? How does that compare with past quarters roughly?
So much for that.
My dry powder is gone. Already way over invested in this.
3.50 is really tempting. Unless this is falling for some actual new reason.
Somebody needs to bring that up on the next cc. Are you considering diluting shares prior to getting back to the ipo price?
Well it’s pretty clear few people have confidence in them at this point. It’s being priced right now to not be able to earn anything more than 3-5 cents per quarter.
There’s no news out is there? Even indirect stuff?
Yes, Thanks very much. This is good to know that they have a year cushion plus some alternatives after that if necessary.
Eventually it’s going to run out of room to go down, right?
Even if they did have enough cash flow, the float is already really small due to sams having a 55% stake.
On a positive note, if you trust that they are going to do $9 plus million in q2 and then only go up from there, then current valuation is now approaching only 1x annual sales. In most cases that would be considered a bargain buying opportunity.
Well, failing to earn more than a penny or two a share mixed with more trade war escalations that was the big reason given for one of their previous big mess ups is not supportive of a strong share price.
They need to start delivering. There isn’t any trust that future performance will be there. And patience is up.
Hasn’t thought about homes that already had a solar system augmenting.
A DC generator isn’t going to be able to replace the AC line to one’s house. This may be a reason for cell towers to have backup, but I do t think this is very helpful as a general Residential backup system..
On their point about new sales flowing to the pre tax bottom line at the rate of gross margin, do you trust that the SG&A of q1 is the new norm rather than the higher q4 numbers? They’ve said before that fixed expenses were staying flat and it’s bobbled around. Basically do we trust this?
Because if q1 is the flat level than hitting even $9 mil in sales means 5 cents a quarter or so. At $12 million sales, about 11-12 cents per quarter.
Is the army decision supposed to be made by the end of May?
Looks like he of day low volume games again. But this real pathetic hugging all time lows again.
Guess it looks like this isn’t going to get any traction without further news.
I’m still frustrated with this company, but I’m feeling more optimistic after this quarter and call. In comparison, I was really not feeling good after the q4 call.
So just listened to the call. And yeah, the last guy was great. Wish he had actually pressed even further.
But on the good news side. If they said they did 1.5-2 million in January, then that implies about 3 million per month for feb and mar. If this pace doesn’t pull back the they are already heading to 9-10 mill at least for q2. And If we can indeed trust that there operating expenses are going to trend flat for the rest of the year, even with a 31% gross margin, that means q2 would be 4-6 cents per share depending on tax expense realized over the quarter.
We could finally be moving into some bottom line improvement which hopefully starts getting this thing moving. And if they can hit their full $5 million per month capacity by end of the year, then well finally get some good numbers.
While I think there is still a trust issue, we may finally be turning the corner.
Thanks for the recap. Glad to hear on expenses and plant capacity. And I’ll have to look forward to that last guy.
I won’t have the opportunity to listen to the call until tonight. Any big highlights from anyone who called in?
Glad to see expenses leveled off and margins moved in the right direction. Disappointed that the top line pulled back from Q4 - they suggested on the last call that that wasn’t going to happen. Also a little worried about cash position, but they do have lots of receivables.
Will want to know what they can say on the call Re: March/April and anything about what q2 will look like.
So what do you need to see tomorrow to judge the report/call a success?
That’s quite the day dream. Honestly I wouldn’t even want an offer right now. The premium that would be offered is o it going to be so much and they are priced right now to never make anything more than say 5-7 cents per share per quarter. (Which the way they’ve been going, maybe that’s accurate).
If that’s the case, they and their investment bank really did indeed pull a fast one on that ipo valuation.
Thanks for the link. But he’s been bullish every quarter. All the while the company’s market value is half of what it was 2 years ago.
Your worried about this. Or they are worried that they haven’t been able to put out a pr?
I won’t put it past them that they are preparing to tell us that Q1 was another crappy quarter. More than they even sort of guided from a month ago.
Telling us that they have a backlog number “very soon” and then nothing isn’t helping on the list of reasons why we can’t trust what they say.
I guess we’re now getting Q1 earnings later than expected?
Guess not.
Did he have any reaction to that?
I’m not sure. Personally I’m more worried about margins not showing improvement/ them continuing to build their SG&A to a point where they can’t be meaningfully profitable under their current factory capacity. Especially when they are now taking a new residential market (which may eventual be great) before they even manage to get their current telecom business working sustainably.
They’ve said multiple times over the last year and a half on how they expect margins to normalize/improve. They never do. They’ve said before how they don’t expect their fixed costs to rise much more and yet they still do. And they’ve said in the past that they expected their cash position to normalize and they just depleted a lot of it. Way back they said they expect Verizon to return, and they haven’t. They said they expected meaningful international sales at this point. They haven’t done that.
So I dont think it’s any particular sales number that’s needed per se. (Though of q1 comes in lower than q4, that’s another mark). It’s more when are we actually going to see some results/can we start trusting you again? I don’t think there is a lot of confidence right now that they can even get back to a level of earnings to even justify their IPO price.
Ahh thought 4.30 was the historic low.
But anyway, on what south said I don’t think their poor performance is out or malice. They just always spin us stories quarter after quarter about how good things are right around the corner and then they never deliver. So there is just not any trust at this point. I wish they would just level with everyone rather always over promising and under delivering.
Great. New all time low.