Good, Bad and... No Ugly. Good: Q4
1. Higher Revenues - 7.3% increase from Q3 and 37.5% increase from last year.
2. Higher profit Margin - 24.1% vs 13.4% from last year AND 1.6% higher from Q3.
3. Generating more Cash Flow from operations - Still negative, BUT internal cash flow generation increased by almost 40%.
4. No long term debt - Beautiful
Bad: Q4
1. Still not making money - Negative 0.18 EPS (Below expectation... not that there is much expectation out there.)
2. Revenues YoY decreased 4% - This is probably due to poor management in the first half of the year.
3. Q4 operating expenses slightly higer than Q3 - Due to one time costs of transition and termination of formeer CEO and fixed asset write-off's.
Ugly:... There is no Ugly. The company has transitioned successfully form poor management, low revenues and high costs to the exact opposite!
Are they making lots of yet? have they reached economies of scale yet? nope.
BUT, they are well transitioned to do so! here are some commments I took from the MD&A:
In addition to the improved financial results in the second half of fiscal 2015, the market position for its products were strengthened as a result of the changes made in 2015, evidenced in the fourth quarter of fiscal 2015 by an increase in Request for Designs (“RFD”). Historically positive market momentum that is generated in the latter part of a fiscal year typically leads to revenues in the first half of the following fiscal year.
As a result of the Company’s strategy of diversifying its Revenue base and becoming less reliant on the Mobile product line, the Networking product line has seen increased customer demand in the last two years, notably in the second half of fiscal 2015. We are the leading choice in the United States for Tier 1 carrier grade gateways. We have continued to build a robust product pipeline, and will continue to leverage our expertise and technology to grow the product portfolio of this product line. Over the past two years the Networking product line has also been able to diversify its customer portfolio by securing some significant new customers. As a result, Networking product line revenues in the second half of fiscal 2015 increased by 11.3% over the first half of the same year.
If you are investing in BYL for the long term,Good for you! I believe 2016 is going to be the yar we see some realy growth. Managment has skin in the game (they are actively buying shares), they are obviously making HUGE strides to turn their business around (moving HQ to Toront, Replacing CEO) AND they are pooring resources into sales and R&D. This is great for business.
Good luck tomorrow!