RELEASE MAKES GREAT SENSE.. I LIKE IT A LOT ACTUALLY
Here's what I mean. First, remember, this reports talks about data that is old ...
4-16 months old (1997), yet an 83% revenue rise shows me that they know how to grow the business, and the cutting of 2 unprofitable divisions, although a bit painful, shows me they are smart to cut costs and re-focus on their core business that is solid and mature. Get rid of the mediocre divisions, so they don;t drag down the overall performance.
Even the seasonally SLOW Q1 quarter that they refer to in the release is ALREADY OVER WITH. That is not bad news...most all companies have certain traditionally slow quarters and strong ones......when does NINTENDO or MATTEL do most of their business, do you suppose? Yep, last 3 months of the year, and which is historically the slowest...yep Q1.
BUT NOW we all already 20% of the way through Q2!
Since the potential $20-30 mil Lockheed Martin contract was only signed in February 1998 this company has a lot to look forward to.
The current quarter according to Mr. Mueller will be signifantly better than Q1. That is what he re-iterated to me as well when I talked with him last week.
Lots of great PR to come...their niche of build to order computers and servers for the Government and Large Fortune 500 Companies is a great profitable area. And they don;t have to carry area inventory because it IS ....BUILT TO ORDER!
Hey, they kept their word and got financials out this week...they are a no-nonsense company with an agressive PR firm hired to increase shareholder value and superb contracts in hand with major players in a hot- niche business
Works for me,,,
Dave |
