Value Microcaps Motherboard

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sskillz, re ARTX

Nice catch on the $600K. Does seem like a .10+ quarter is possible even with the higher share count. Noticed something a little strange in the PR from 6/23/14 announcing the $36M order. They also gave updated guidance in the same PR:

Arotech also announced that it is updating its full-year 2014 revenue and EBITDA expectations. The timing of recent awards and planning of programs in hand has altered Arotech's 2014 revenue guidance to be in the range of $105 to $111 million while increasing net backlog to $80.6 million (as of June 1, including the funded portion of this order). Given improvement in margins as well as the favorable product mix of orders in hand, Arotech expects to improve its overall profitability levels. Arotech updates its expectations for full year adjusted EBITDA to be in the range of $7.8 to $8.3 million.


Revenues look fine. Should be a good Q3 & Q4 coming up. But EBITA seems light. I realize this came out weeks before the company's actual Q2 report. But guiding for $7.8-$8.3M in EBITA for the year when you do $6.3M through the first 6 months makes me a little nervous. Maybe they're overly conservative. Maybe they updated the guidance on the CC (haven't listened yet).

I still bought a few ARTX in the $3.30's today. Should have some excellent comps coming up. So looks like an attractive hold into the Q3 report.