Some thoughts on today's news....
I added some IFCI at 7 1/2. Read the release and you see a young company that isn't digesting its growth very well - nothing there that isn't fixable in a quarter. Like we said, they could have done better managing Wall Street expectations too.
At $8 you have a $240 mil. market cap for a $320 mil. revenue run rate in 2000. And they are still profitable. Net profit margins doubled year over year even at the lower EPS number.
A no-brainer in my book but no telling where this market will take it.
"International FiberCom Expects to Report Record Revenue & Earnings for Third Quarter
PHOENIX--(BUSINESS WIRE)--Oct. 13, 2000--International FiberCom Inc. (Nasdaq:IFCI - news) Friday announced that it expects, on a preliminary basis, revenue for the third quarter ended Sept. 30, 2000, will be approximately $87.5 million, with earnings between $0.08 and $0.10 per diluted share.
For the third quarter of 1999, revenue was $47 million, with earnings of $0.02 per basic and diluted share. The expected third quarter revenue represents a new quarterly high and is approximately $10 million above the average revenue forecast by analysts.
While third quarter earnings are expected to be at record levels as well, they are expected to be below the First Call earnings consensus of $0.16 per diluted share. The company plans to announce final results for the third quarter and nine months on or about Oct. 26, 2000, and will host a Web-casted conference call for investors at that time.
The company reported that demand for its services are at an all-time high. This is evidenced by a 30 percent increase in backlog during the first three quarters of 2000, even though the company is working through its backlog at an unprecedented rate, as reflected by its record third quarter and year-to-date revenues.
The company expects third-quarter earnings to fall short of consensus estimates due to higher than projected research and development expenditures for its wireless technology products and start-up expenses incurred to support the rapid internal expansion of its core infrastructure development business in a number of new markets.
In addition, overall gross margins are lower due to the revenue mix and the timing of the commencement of certain projects in backlog.
Chairman & CEO Joseph Kealy commented: ``Our revenue and backlog are growing faster than anticipated in every area of our business and we expect this trend to continue in 2001. This quarter reflects increased investment in our proprietary wireless technology products and in the future internal growth of our core infrastructure development business in important new markets, including Austin, Dallas and Seattle.
``We have had to ramp-up and invest heavily in recruiting, training and mobilizing new facilities in our new markets to fulfill contracts and support both wired and wireless opportunities in those markets for some of our key customers. This investment will help to build the base for our future expansion in these areas.''
``During the third quarter,'' he said, ``our AeroComm subsidiary accelerated development of new proprietary wireless technology products and enhancements to existing products based on specific field testing and feedback from major telecom service providers who have the potential, we believe, to be important users of these products.'' |
