Baylin Technologies Inc T.BYL

BEAT, BEAT, BEAT!!!

[zero2million]

Baylin Technologies has BEAT markert expectations with EPS of -$0.02 (Analysts prjected between -0.08 and -0.05) in Q2 of 2016

Highlights:

• Revenue increased by 57%, to $15.7 million 

• Operating expenses declined again in both dollar term and as a percentage of Revenue, to $4.7 million (29.8% of Revenue)  

• Positive EBITDA continued into Q2 2016. At $0.5 million it increased from $0.2 million in Q1 of fiscal 2016.  

• Increased our Cash position to $8.1 million at end of Q2 2016; an increase of $1.4 million from March 31, 2016. Debt and lease obligations declined by 57%, to $2.7 million, in the first six months of 2016. 

Important stuff from MD&A:

• A  contributing factor to improved financial results in the first six months of fiscal 2016 was the improved market position of the Mobile product line with [BYL's] major customer relative to a year ago. The momentum created in the latter part of fiscal 2015 carried into the first half of fiscal 2016, primarily due to the continued success this customer is having with its new product launch. (Mobile shipments in the second half of fiscal 2016 are currently anticipated to be lower than the level shipped in the first half of fiscal 2016.)

• U.S.-based telecommunication carriers are predicting growth in network capital spending in 2016, and [BYL's] Infrastructure products are well positioned to benefit from that occurrence. Accordingly [BYL] anticipates posting stronger Infrastructure shipments in the second half of fiscal 2016 relative to the first half of 2016. 

• Cost reductions, manufacturing efficiency and product line rationalization will continue in 2016 and these improvements will lead to modest improvement in gross margin in the second half of fiscal 2016 compared with the first half. 

My comments:
If you have been following my commentary on this website, then you know how fond I am of Baylin Technologies. Since Randy Dewey took positionof CEO, the turnaround in this company has be extraodinary! If you look at basic trend analysis you can easliy see that the trends are POSITIVE! Revenues are up, profit margins are up, EBITDA is up and of course Income (still negative, but going up). 
Please do yourself a favour and read the MD&A. There is so much good information and  its quite exciting to see how the company is growing and succeeding in the mobile infrastructure market.

PS
I was right about selling their Israeli assets. They have sold of a % of their old HQ and are leasing out the rest... Probably going to sell it eventually. The sale was for 1.8 million.

Im going to keep reading and eventually do more analysis  for Q3.
In the meantime, lets hope the market responds positively :)