Web Site
Google Finance
SEC Filing
Nov 25, 2011
Check list:
1.Major Business.
Optical disk distribution equipment.
2.Balance sheet.
Recent Price $11, Tangible book value: should be no more than $10 after Qumu acquisition. Share outstanding: 10.45m after Qumu acquisition. Market Cap: $105m.
Current asset, Current liability, No Debt, Inventory low, Cash: should be around $70m after Qumu acquisition.
3.Credit facility.
Not important
4.Financial data by years.
Revenue, Earning, FCF, FCF-WC, Dividend.
Optional: FCF-WC, SG&A, R&D.
Revenue/Price ratio.
Dividend policy
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 89 | 83 | 91 | 109 | ||||||
| OP Income | 11.5 | 11.3 | 11.8 | 20.9 | ||||||
| Income | 7.7 | 8.5 | 9.4 | 15.8 | ||||||
| FCF | 7.5 | 13.8 | 7.9 | 25 | ||||||
| Cash | 117 | 110 | 95 | 94 | ||||||
| Dividend | 0.47* | 0 | 0 | 0 | 0 |
5.Cost structure
No much leasing obligation. Seems pretty flexible.
6.Insider holding, options, Insider trading info, share buy back.
CEO own very few shares.
Royce own quite a lot shares
7.Management compensation.
A reasonable management compensation. Compare dividend with compensation.
8.Employee numbers. Revenue/Employee. Compensation/Employee.
189 at end of 2010.
9.Industry comparison.
Major competitors in the same industry. Whether the business is competitive?
10.Auditor
Better be among the big four.
11.Major events.
Oct. 2011, acquired Qumu Inc for $52m($39m cash + 1m share). All the cash probably will go to the goodwill.
12.Comments.
(1)Revenue on optical equipment side is constantly down. The gross margin is still good. With low inventory, No Debt. The business itself is very well managed.
(2)The Qumu acquisition is kind of uncertain. Need to wait a year to see how it will turn out.
