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partial CUI Global 2Q19 results -3
19:20 14-Aug-19
CUI Global lost 8 cents per share according to the 10-Q filed
today.
The CUI Global conference call has just concluded, but not much detail was available. The main new piece of information was that one new company is being contemplated for purchase, in addition to the one that was left. Analysts pressed for even broad range financial projections, but none were available. In terms of timing, "end of summer" is hoped for, and certainly before year end, but management sounded very reluctant to commit.
Beyond that, it was more projections of business to come. Italy has an end-of-year budget deadline and recent meetings indicate that a schedule for 2020 is expected in the fall. Similarly, in North America, management looks forward to Canadian gas certification and a deployment with GE turbines this year. Finally, management also expects "fairly significant" revenue from the Samson partnership in back half of the year.
In the meantime, operating costs have been cut, but uncertainty continues and I don't think the market is going to sit well with that.
On 8/9/19 7:35 AM, Esekla wrote:
CUI Global has reported some results for its second quarter:
- $22.8M in revenue misses by $3.8M
The company has filed for the automatic 5-day extension on its 10-Q in order to resolve non-cash potential adjustments related to the valuation of its equity method investment in Virtual Power Systems. My estimation is that we're looking at a mid-single loss per share, but I will update when the 10-Q becomes available.
More imporantly, the Nikola transaction is now down to a single acquisition, which makes it sound like the deal is falling apart, and I think the market may take it badly. Management believes the company has enough cash to operate for 1 more year, but I believe the market won't give it that long. The conference call is at 8:30.