GREY:ESPAF - Post by User
Post by
93Darkhorse93on Aug 03, 2016 8:37pm
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Post# 25108435
Q2:Continued Fundamental Progress Strong 2 half Primed
Q2:Continued Fundamental Progress Strong 2 half PrimedI am always amazed at the gross profit margin that they are able to put up of 73%. Once the product rollouts begin in size in the second half of 2016 the operating leverage will be huge. The ARRIS acquisition looks better the more I can see the value add and expansion of services as it rounds out the Espial offering and the revenue per client expansion and makes each client relationship more sticky. Not concerned about the slight Rev miss as the business just begins to ramp into the 2nd half of 2016. With the 46M of cash on the B/S so only paying 38M for the business is real cheap given sales trajectory and client relationships already in place. The business is in a much better place today than it was a year ago but yet the stock is half the price. I like the setup looking to add tomorrow.