RE:Skelterhelter - re Conference callluberon wrote: As mentioned previously, I am out of the country and could not access the call, or replay.
Was there any explanation given by Espial as to why the release was available a scant 15 minutes before the start of the call? Hardly enough time for analysts and investors to examine the detailed financials in order to ask intelligent detailed questions, IMO.
Was there any discussion at all re the TeleColumbus implementation which we were led to believe was to happen in Q4?
Any discussion/feedback on the slings and arrows heaped on both Rogers and Espial by hapless customers who were forced to use the Navigatr interface (without recourse) as early as last summer?
TIA.
I listened to the call while also working on something so I was listening actively during parts of it and not at others. I also missed the last part of the call mid way through the second round of analyst questions so I can't speak exhaustively regading he call. I also did not have a chance to write notes during the call.
Thats said, the release was out on the wire exactly 30 minutes prior to the call but I agree it's still quite tight. I did not hear this being addressed in any way. It's not unheard of so I'm not surprised analysts didn't ask about it.
There was talk of TeleColumbus but I missed a good part of it unfortunately.
No slings and arrows but lots of questions regarding process and whether it's still viable. Company tried to walk a fine line by saying that they are doing whatever the customer is asking them to do so it sounds like they are still in the game, customer not so happy but Espial trying to address their concerns.
Most of the questioning was around Q4 financials. Also, some talk of what they will do with their cash and the company alluded to looking for acquisitions that will help them deliver faster and scale up to more customers.
All in all, to me it sounded like there will be some more short term pain in terms of no immeidate catalysts but the company believes much more business will come in a couple of quarters (my words). Hence they want to stack up their ability to deliver.
So for me there are two ways to look at this (probably more but for sake of argument...):
(1) Company sees lots of future demand and will require more resources to capture the opportunity (Good), and/or,
(2) Current activities proving that servicing customers is more resource intensive than anticiapted hence the need to add more resources in order to service future customers (Less good, costs up / margins down)
They did say they expected margins to revert the higher gross margins we saw prior to Q4 after the near term so maybe #2 is too harsh. I'm not sure so I am personally staying away until I get a better sense.