INFT released earnings last night. Noting to write home about at all. Sales up 4% YOY, operating “income” swung to a loss of $224,000. It looks like they are doing SOMETHING, although exactly what is the question. They wrote-off some old, bad investment and the related tax effects which caused an overall loss of $4.6 million in the quarter ($.40 per share). Also made the CFO the new President and CEO, although they don’t seem to say what is happening with the current CEO. So either they are preparing for a sale of the company (cleaning up the balance sheet and putting the finance guy in charge) or this is just a new way to get the current management higher pay and some cheap stock options. Valuation has dropped again. Now $6.13. Now a HOLD. Only good news is that they have $2.64 a share in cash–70% of the current market value. Still expect this to be sold, but $5.50 is looking more like $5 to me.



  1. How do you calculate $2.64/cash; I calculate $2.58. $30.2M in cash divided by 11.72M shares (after 170,000 share cancellation in 1Q 2007 per conference call). I follow this one closely, too, and have been accumulating since the fall. I blog about this one, too. I also see a going private transaction – somewhere in the $5.50-$7.50 range. Reference to growing costs of Sarbox compliance during conference call is a hint as is closing out Provantis deal, which should help with cash utilization and keep more on hand to build the balance sheet.I’d be a very happy camper, even at $5, with this one.Time will tell.

  2. I used $30.17 million for cash, and 11.42 million for shares. I typically use the fully diluted shares O/S for the current quarter.I agree that this is an ideal GP deal too. Hopefully thats what they are preparing for. This one is like watching moss grow. Hopefully MGMT. will not give this away in exchange for some lucrative compensation package and we will see $6+.

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