Start to watch this one carefully. I think all the bad news is now out on this one and the stock should be near its bottom. Earnings were actually better than I expected since most all of the delayed shipments are shipping THIS quarter. I expect to see something like 7 cents a share in the 3rd quarter or better. That would mean for 1996 -
1st quarter -.17 2nd +.01 3rd +.07 and positive from there on with all the new contracts that they have landed recently.
I originally bought in at 2 (not 3 as I mistakenly typed) and will start adding next week. Volume seems to be picking up. Lots of great signs.
EL PASO, Texas--(BUSINESS WIRE)--Aug. 10, 1996--Accugraph Corporation, a leading supplier of network information software, today announced income of $107,000, or $.01 per share, on revenue of $5.77 million for its second quarter ended June 30, 1996.
This compares to income of $986,000, or $.05 per share, on revenue of $6.25 million for the same quarter a year ago.
The profitable quarter comes after a $3.41 million or $.17 per share first-quarter loss attributed to unexpected delays in several large customer orders.
"We are disappointed with the low profitability of the second quarter," said Accugraph President and CEO Dennis McGinn. "Based on the results of the first two quarters, it will be difficult to
achieve a profitable year."
During the quarter, the company reduced headcount by about 16 percent in its on-service-related groups, closed its Seattle operation and focused engineering efforts on activities with the
highest potential. Improvements in the collections process resulted in days sales outstanding going to 98 days from 121 days, compared to the previous quarter.
In addition, McGinn said a full review of all aspects of the company's business is being conducted under the direction of the Board of Directors in order to maximize to company's potential and
reverse recent trends. As part of this, certain senior-level responsibilities have been realigned.
"The changes we're making are expected to result in greater operating efficiencies and lower expenses, while also enhancing market penetration and shortening the sales cycle," McGinn said. "Our business has proven to be cyclical and unpredictable, and we will continue to run operations in the most cautious and conservative manner, without sacrificing product quality and customer service. Our intention is to achieve a level of operational consistency and
predictability."
Also during the quarter, Accugraph released the Microsoft Windows NT(R) version its popular Equipment Bay Management (EBM) product and acquired a Windows-based telecommunications equipment documentation software product for laptop computers called BCMS (Bay Cable
Management System) from Toronto-based Arkipelago Inc. |
