SunWorks Inc (SUNWQ)

[PMrz]

I tend to agree with you although how do you manage analyst expectations. One concern I have though is that they originally gave guidance of 40-45 mil and GAAP profitability at year end. I don't believe they reiterated GAAP profitability on the latest call. I'm fine with the non GAAP EBIDTA measures they look at now and it is a good measure but if they are not going to be GAAP profitable at year end they should state the valid reasons sooner than later as some of which could be the investment in infrastructure now to position for great growth forward. I think the infrastructure will be from investing in integrated accounting and purchasing systems that create efficiencies, limit increases in overhead expenses as acquisitions are integrated and reduce purchasing costs. But this investment will create additional non cash depreciation expense. I also think the addition of a CFO and Corporate Controller as well as the mention of hiring someone to pursue the cell manufacturing may be part of the infrastructure and will increase G&A expense. The bottom line is I think they are doing the right things but they need to make sure future acquisitions are accretive. I also think while they are in this EBIDTA stage we need to focus on CFFO closely and working capital management.