Ranks in the bottom 15% of his database. Earnings estimates have been shaved by about 6% in the last 90 days. Forecasting a swing from a loss of $0.09 in April/06 to earnings of $0.02 in 07. Forecasts for 08 are earnings of $0.26. Signing up clients, but it takes nine months for revenues to come.
The frustration for this company has always been how are they going to translate a very brilliant encryption algorithm into revenues and profits. Most of the revenue has been generated through toolkits. They may have missed their window.
Ranks 487. Analysts shaved estimates by 20% in the last 90 days. Expected to earn $.21 for April/08 year-end giving it a high 25 P/E. They license their technology for consumer electronic devices as well as good encryption technology. Speculative.
Because of security reasons, guidance coming out of the company is very limited and is frustrating to analysts. It takes time for them to put licensing into their encryption products, and that creates delays. Looking for a new CEO. Also want to go after companies using their technology and make them pay.
The problem is, this was seen as a growth stock, but had no growth. If they can't get revenue growth and earnings gains, the stock will have a hard time moving higher.
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