It all comes out in the wash. I bet the management wishes they could have held off until after Labor Day to come out with this gem of a report. Put up or shut up time is quickly approaching especially if one looks at cash outflow vs. income. Expense ratios climbing like a jet fighter pilot reaching for cloud cover.
They do have one leg up on Q2 with the as yet "unnamed" $1.2 million customer but they had better start pulling out some more finished goodies from the oven before they lose all sense of credibility in the investment community.
One new question to ponder is what effect on the "free market" business climate will the dramatic change in the political picture in Israel have on companies like OptiSystems. The sweeping victory by the Labor party could reverse the inflationary control exercised by the Likud party and also see a return to the hey days of Socialism in Israel, if the final results show no need for forming a coalition government.
In the meantime read the Q1 release and weep:
OptiSystems Solutions Ltd. Reports First Quarter Results
TEL AVIV, Israel, May 18 /PRNewswire/ -- OptiSystems Solutions Ltd., (Nasdaq: OPTL - news and OPTLW - news), a leading provider of performance management software for the SAP and IBM markets, today reported first quarter 1999 revenues of $800,312, versus revenues of $801,713 in the first quarter of 1998. Gross profit for the first quarter was $656,671, compared to $730,977 in the first quarter of 1998.
''A major portion of our revenues in the first quarter continued to be derived from our mainframe Energizer for CICS products,'' commented Gerry Frankel, CEO of OptiSystems. ''We expect that in the coming quarters sales of our Energizer PME for R/3 product family will provide a greater share of overall revenues.'' |
