Stock price when the opinion was issued
Largest customer, Samsung, seeing a slowdown. Other divisions are booming, with a record backlog. Returned to profitability. 2024 will be a big year. Headed in the right direction. Wouldn't be surprised if they divested the mobile division. Stock's worth significantly more. Not for the faint of heart.
Things haven't worked out for them in recent years. They went on a spending binge, buying companies, then Covid hit and nobody could travel. Bottom line: they recently did a rights issue, cleaned up the balance sheet as the main shareholder remains supportive. The mobile antenna division was hurt the most as their major client (Samsung) suffered with a swing in cell phone sales, but the other three divisions are doing well. They should sell the antenna division, but debt is in good shape. Better days lie ahead. Average down if you're under water.
Recent quarterly results missed expectations of a loss of 6c, coming in at a loss of 7c. Revenue also significantly missed estimates of $26.1M coming in at $16.13M, declining from $20.4M in the year prior. BYL also said it has hired an investment banker to facilitate the sale of its Mobile and Network business line in this calendar year. Continuing operations now comprise three business lines: Embedded Antenna; Wireless Infrastructure; and, Satcom. These were weak results for BYL with revenue declining and losses widening.
Unlock Premium - Try 5i Free
BYL has struggled year-to-date down ~55% as well as down 37% in the last three months. Revenues have declined this year along with weak margins, while continuing to operate at a net loss. The balance sheet is not particularly great either with cash of only $4.3M and a high net debt of $38M. Cash from operations has also gone negative in the recent two quarters. Fundamentally, BYL is very weak as it stands, and we would be comfortable moving on from it. Small caps are due for a rebound, but BYL has struggled with declining revenues and the high debt level does not entice us.
Unlock Premium - Try 5i Free