RE:The dumb money will soon be out!What I got out of the CC:
They see significant growth in the services business with higher margins and they expect this growth to continue. This in turn would mean a further growth in gross profit margin.
They continue to integrate the business to lower operating expenses.
One of the reasons they sold Smart Edge is that Pivot is not known as a software developer and as a result customer might be reluctant to use this software. With Intel now behind it those concerns should be resolved.
Pivot indicated the sale of Smart Edge results in the following:
Reduced expenses.
Increased financial flexibility and a distribution that now is fully sustainable.
Option to pay down debt resulting in lower interest payments.
Option to increase to buy back shares.
Room for strategic acquisitions. ( They have some in mind.)
They indicated they are bullish on Q4 and indicated although they don’t give future guidance that Q4 is usually equal or better than Q2.
Taking all things in consideration I also do believe that 2019 is going to be better that 2016 and 2020 will be better than 2019.