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CUI Global 2Q18 report -3

09:08 06-Aug-18


CUI Global has released its results for the second quarter:

It looks like Italy hasn't moved forward as hoped.  Management says that Socrates, its customer there, has made operational inquiries with the new Italian government but there is still no calendar.  Brexit is also continuing to complicate matters in the U.K., but management says that new announcements are expected this year.  Backlogs for both the power and energy segments improved substantially YTD, but they haven't changed from what was reported last quarter. 

Management continues to forecast improved order flow in the second half.  In particular, the MoU with Samson should transform into a detailed distribution agreement for everywhere but North America and the U.K. in September.  If it does, revenue could begin to be realized late this year.  I think that's plausible, but Samson would be moving from a manufacturer to an integrator.  I can understand people running out of patience.  Cash on hand would probably last only until around the turn of the year, before new capital would have be raised.

Management also expects ICE data centers orders towards year end, with customers including SAP, Intel, and at least half a dozen others.  I will continue listening to the conference call and will report again in the unlikely event that there is anything more of importance to say.  Questions are always welcome.