Peter and Amsterdam, according to the company, Barwick was never responsible for sales of Netgain, but rather just the older products, and Spence's department, professional services, would be shrinking with the shift in focus to Netgain as implementation is said to be simpler and less time consuming. Also, the UK operations were acquired, so it is unclear what they meant by "responsible for the success" of UK operations.
I think the departures were effective 8/31, so that may have contributed to the decline, but a more likely cause is the revisions to earnings estimates by the one analyst (at Robinson Humphrey, I think, but I'm not sure) covering FSTW. The company says the revision was not based on guidance they provided and that they aren't sure of the basis for the revisions, but the timing seems right to be the likely cause, IMO.
Interestingly, McIntyre's purchases were made at a time when one would assume that the management changes and whatever other trends that may have lead to the earnings revisions were all well known to him. Apparently, he either didn't expect the stock to react so negatively or he felt that positive developments would come to light before he had another chance to buy. $4 seems expensive now, but it didn't a month ago and may not after the next qtrly report.
I too was concerned about management changes, not to mention earnings estimate changes, but McIntyre's purchases, the 9/30 release date, and other developments like the partnerships with Grant Thornton and Calico are, IMO, enough reason to give this more time.
JMO,
Bob |
