Earnings Assessment EPS of $$0.509 beat estimates of $0.39 and revenues of $74.708M missed estimates of $92.6M. Its revenue miss was largely due to one client's delay, but management is still maintaining its objectives from prior quarters. While sales technically declined year-over-year, its gross margins improved substantially from 22.2% in the prior year to 36.9% in the recent quarter. The client's delay did not decrease sales permanently, but rather this $35M will be pushed forward into future quarters. Management has an excellent handle on its costs, and this is driving margin expansion. Its operating cash flows for the quarter improved widely from last year, and overall, the company is in a great financial position. Order backlog totaled $402.3M compared with $373.7M in the prior year.
The market might not like the delay in revenues due to the one customer, but overall the company continues to execute, and we consider these results to be good. (5iResearch)