GREY:XEBEQ - Post by User
Comment by
Gann999on Aug 11, 2022 5:08pm
152 Views
Post# 34889741
RE:Surprised by the market reaction
RE:Surprised by the market reactionTurning the corner how exactly? How can anyone be assured that the provisions taken in q2 will be sufficient when last q they said they expected the costs to extend throughout the year? So q3 another disaster with more "provisions" possible plus severance costs? But hey look at the numbers if we totally didn't sell stuff that doesn't work properly aren't they a thing of beauty? Lol what a joke.
tamaracktop wrote: I expected the stock to react positively to these numbers.
Adjusting for legacy contracts the numbers showed substantial improvement.
Q1 showed an ebitda ex legacy contracts of negative $6.4 million. In Q2 the adjusted loss was $3.4 million.
Net loss in Q1 was $18.4 million. Adjusting for legacy costs, net loss in Q2 was $11.4 million.
Gross margin ex legacy was 23%
The company is turning the corner but the market is obviously concerned about the balance sheet.
Working capital is getting skinny at $36 million, but Jim addressed that to an extent when he talked of selling less profitable assets.
I don't think a financing is in the cards.
He's only been at the helm for 4 months, and so far he's made the right moves.