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Baylin Technologies Inc T.BYL

Alternate Symbol(s):  BYLTF | T.BYL.DB

Baylin Technologies Inc. is a Canada-based diversified global technology company. The Company is focused on the research, design, development, manufacture and sale of passive and active radio-frequency products, satellite communications products, and supporting services. The Company's products are marketed and sold under the brand names Galtronics and Advantech Wireless. The Galtronics line of business designs and manufactures wireless antenna solutions for customers embedded, infrastructure, mobile and network enabled products. The Galtronics line of business is comprised of three business lines: Embedded Antenna, Wireless Infrastructure, and Mobile and Network. The Satcom line of business designs and manufactures radio frequency (RF) and microwave products for wireless communications markets and for commercial, critical infrastructure, government and military clients. The Satcom products are manufactured at the Company's facilities in Canada and the United States.


TSX:BYL - Post by User

Bullboard Posts
Post by zero2millionon Nov 12, 2015 4:43pm
97 Views
Post# 24286567

Q3 - The Good, Bad and Ugly

Q3 - The Good, Bad and Ugly

Good (Highlights)

 

The Company has reduced its reliance on any single customer by continued diversification of its revenue base. As a percentage of total sales the relative contribution of its largest customer has declined year-over-year.

 

During the nine months ended September 30, 2015 the company has achieved an overall expense reduction of fixed costs (fixed manufacturing costs and operating expenses less depreciation and one-time costs) of $2.4 million versus the comparable period in 2014. The reduction reflects an average quarterly expense run rate of $6.4 million in the first three quarters of 2015 compared to $7.2 million average quarterly expense run rate in the comparable period of 2014. The expense reduction was achieved due to several initiatives implemented in the last six months including new manufacturing optimization plans, new patents strategy and the manifestation of other cost reduction initiatives instituted by new management. The Company continues to execute on its stated cost reduction strategies and anticipates a lower average quarterly run-rate in fiscal 2016.

 

The above noted costs savings have been reflected directly in Adjusted EBITDA, which has declined by a modest 4.2% despite a 15.2% decline in revenues compared to the same period prior year. The Company anticipates further improvement in Adjusted EBITDA in 2016 as costs are expected to stabilize and revenues are expected to increase.

 

In other words, costs are going down, profit is going up. More diversification. 

Next fiscal year will bring more revenue and more profit.

This is wonderful news!!!

 

Bad

 

EPS (0.16) - Not a great number.

Earnings for this quarter are (in my opinion) low due to transition costs. The expenses incurred are necessary for the turn-around.

 

Ugly

 

The turnaround process is painful and slow. I doubt we will see good numbers in the next three quarters. Maybe Q3 or Q4 of 2016…

But who knows. Randy Dewey and his new team might be able to turn this ship around faster than we think.

A few months ago I said this process would be a lengthy one, but already we are seeing results.

 
Bullboard Posts