RE:RE:RE:LITE ACCESS TECHNOLOGIES REPORTS 2017 Q4 AND YEAR END Norwood66 wrote: The GM was negative $150k!!! A good company has a positive 50% margin, a good construction consulting company has 30%. LTE has a negative GM! Not to mention, that LTE used $8M worth of cash last year. It is no wonder management has changed. They aren't on the right track for an industry that has very positive trends and tailwinds.
I couldn’t agreee more Norwood. IMO LTE was expanding into the UK expecting work, but Virgin put a 6 month hold on those plans. LTE was expanding into a “closed” buisiness. Lots of overhead.
But now they have a 17-20 million dollar contract this year as a baseline. Given that margin is often reflected by scale, I think you will see improvement in this metric going forward, since they have a number to work with and can scale accordingly.
Hopefully as they expand operations to include other fibre rollouts, they will take this into account.