UPDATED @ 5:25 EDT: CFO Mullen (in an answer to a question) said the guidance will not be revised, but sounded less than certain that the deals they “expect” will actually get into 2017 — some may slip to 2018. So they aren’t updating guidance. And so, the stock will get HAMMERED, in the morning. That’s my guess.
- Won’t be cash flow positive, until mid-2018 — so says CFO Mullen. [End, updated portion.]
More soon — and I’ll listen in, to the Q1 results call — but (once again!) this is significantly WORSE (four pennies worse per share) than Lake Street Capital (and the company) had forecast.
Here’s the SEC filed item.
It is even worse than Craig Hallum had forecast (and Bob was too kind…), as well.
It is only one penny “better” than my doom and gloom scenario guess.
The miss was at the top line — at sales — with a “restructuring” of one big contract’s minimum ($700,000 worth), in Q1 2017 (revenue fell in Q1 2017):
Yikes — this is an extremely rough start to 2017. And nothing at all promises that the agreed delay in the big contract — will actually come through positively, yet in 2017.
As I say — more, after the call.
U G L Y.
What Matters? 
Yes, ugly. Expected from this mgmt team. BTW, I have a story to tell about one of them. In the next day or so…
Okay man — do you need to share it by email?
Or can it be put in comments, and then run as a new post?
Either way works…
Namaste
I’ll put in comments, nothing earthshattering, just indicative of the folks working/leading there.
I just saw the Q1 results release.
– Revenue DOWN
– Costs UP
– Just who were they trying to fool with Q4, their talk about great opportunity and new management discipline, besides the investors putting new money in?
-Even after getting new cash from stock sale, the current assets less total liabilities is still NEGATIVE.