Thanks OM - I really wonder if we have seen the bottom now. We may not know for a bit but I think it is noteworthy getting to a lower level on price to sales than the significant low reached ahead of the run in early 2021.
And the balance sheet looks so much better now, the debt load was large and confusing then. And generally we should be much closer to some new revenue streams than we were then, if/when the company comes through on those.
The telecom business is much stronger too. They had an uncharacteristic blip in margins last quarter, but one that has already improved. And some other good things are happening - such as that the newly acquired Smartbiz revenue grew revenue 64% from Q3 to Q4.
Obviously not all numbers are positive but its amazing that the two new acquisitions represented 25% of total company revenue in Q4. Further, Smartbiz and Whisl contributed about $1.6 million in gross profit. That goes a long way to help towards covering their acquisition cost, and note that full revenues for those two additions were not even occurring until Q3. The combined gross margin of 12.7% also gives a substantial boost to the overall company margins.
On this early evidence, it's clear that these two acquisitions were prudent additions, and arguably showing some finesse on management ability. They have what they have, but its what they do with it moving forward that matters the most, and this looks like a very good call to me.
I guess it all has to play out over time, but noting that at this point I see price to sales near historic lows, and at less than 1/5 of the industry average.
