I understand your frustration and I’m not exactly happy with recent results.
I have communicated a couple times with Ma and it’s clear he is focused on building strong growth where the company isn’t so reliant on GE.
With the nearly 40% YOY growth in the IT segment backlog the next couple years could bring a much different company IMO
Much of the below is from my communications from Jun Ma....
The IT segment, consisting of VHC-IT and NetWolves, was launched with a VAR (value added resale) agreement with GEHC-IT for its PACS and other related software products, with the intent to leverage access to many diagnostic imaging equipment customers, who also have a need for software and IT infrastructure to support their business. This VAR business includes hardware, software and services including installation, implementation, trains and ongoing support which is usually on a annual contract basis. Only the software piece is from GE and there are third party software as well. Further, they are selling NetWolves’ service to these customer as well. All of these - software, hardware and service - are brand neutral, meaning it does not matter the customers have GE or Siemens or other brand of equipment. It’s the archiving and communication platform, radiology practice management as well IT infrastructure staff they are handling.
The professional sales segment slow deliveries is frustrating for sure but out of their control.
It will be interesting to see if this picks up in the next few quarters as things are shaking up at GE.
With all this said, IMO the future of the largest growth will be in IT segment which is still young. I was disappointed with the operating losses in Q4 but am willing to wait especially at these prices.
