RMDY-key post on the conference call, with conference call access information.
From iminsider on the Yahoo thread
Confirmation that the conference call was bullish on future prospects.
Garlick confirmed strength in core IT services business, emphasized strong, record performance in enterprise deals (showing competitive strength v Peregrine), bullish on pipelines and promise for their CRM and @WORK product lines (but revenues will not be material for a while because the existing run rate of $50m per quarter dwarfs any new product revenue that starts from a zero revenue base).
The only potential short-term concern (and I view it as a strong positive if you believe in mgmt's judgement) is that Garlick said that they will invest heavily in the business to aim for maximum revenue growth. Specifically, mgmt is willing to have "modest" increase in the sales and marketing expense as a % of revenue. A question was directly asked about this expense growth, and mgmt was specific that it would be modest, but this is being done because of their confidence in the business outlook.
The story here now becomes one of revenue from for the near-term, because mgmt specifically is not aiming at squeezing out big earnings numbers. RMDY wants to maintain market share vs PRGN and wants to grab customers in the CRM and @WORK businesses.
Given demonstrated results these last 2 quarters, I support their actions.
Listen to the conference call yourself at 800-633-8284, access # 12699779.
For the stock to solidly drop on these expectation-beating results in an up market, there is only 1 of 2 reasons:
1) Analysts put on morning notes that was concerned about near-term EPS results. IF SOMEONE HAS ACCESS TO THESE MORNING NOTES, PLEASE POST FOR ALL OF US, THANKS.
2) A big seller just wants to lock in profits.
Nevertheless, RMDY seems to be back, growing strongly, growing profitably, and positioned very well in growing markets.
Looks good over the long haul
|
