Q2 - The Turn-AroundCongratulations to all those holding onto BYL!
Q2 earnings was at the high end of analyst expectations. (-0.14 cents per share was at the high consensus)
If you read my earlier post I was hoping for at best a flat Q2 EPS, but BYL is a resiliant, deep rooted company with excellent managment and board of directors that came out with a strong turn around.
Some things that I predicted would happen:
Higher revenues:"...increase of 25.6% quarter over quarter. The increase is mainly attributed to an increase in wireless infrastructure and networking antenna products. "
Lower debt: long term debt is virtually paid off. Short term debt is all that remains.
Forward looking to Q3:
Margins, Margins, Margins....
I want to see lower cost of revenues (COGS) and higer revenues. BYL is lowering their costs, but at a slow rate. This is naural for a company that is going through transition.
New distribution agreements and more products:
This is an obvious one, but it also comes at a cost of R&D and sales force expenses.
Im hoping that Baylins PR team will be more proactive in sharing news about these things.
New CEO:
Im actually happy that Randy Dewey is the Interim CEO for Baylin. He is showing invesors that this company is strong and can be profitable. But at some point there will be a new CEO (I shared my thoughts in earlier posts about who this might be) and that will be big news.
Other than that, if BYL can come out strong in Q3, beating or at least matching analyst expectations then we will see more investors buy in to BYL. Consistant growth is what the street is looking for. and I believe Baylin will deliver!
Feel free to share you thoughts!