Cantor Fitzgerald Downgrades NMS Communications (NMSS) to Hold
NMSS Hot Sheet
Rating Summary:0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Cantor Fitzgerald downgrades NMS Communications (NASDAQ: NMSS) from Buy to Hold and lowers their price target from $1.50 to $1. The firm also lowers their FY08 pro forma EPS estimate from ($0.14) to ($0.13) and reduces their FY09 pro forma EPS estimate from ($0.04) to ($0.06).
The downgrade comes after the company reported its full 2Q:08 results and provided what the firm considers disappointing 3Q:08 guidance.
The firm said, "As it stands, we find it difficult to see how NMS can fund its operations through the end of FY:09 without a significant and sustained ramp in LiveWire sales. Absent a ramp in LiveWire revenue, we think the company must either 1) sell one of its businesses or 2) raise capital. The raising of capital, if possible, could be dilutive to current shareholders. Regarding the sale of one of the company's businesses (NMS Communications or LiveWire), we doubt that management could raise enough cash to meaningfully increase shareholder value. We find this situation frustrating and we are very disappointed."
NMS Communications Corporation is a leading provider of DSP-based enabling technology platforms and systems to communications equipment vendors.
The downgrade comes after the company reported its full 2Q:08 results and provided what the firm considers disappointing 3Q:08 guidance.
The firm said, "As it stands, we find it difficult to see how NMS can fund its operations through the end of FY:09 without a significant and sustained ramp in LiveWire sales. Absent a ramp in LiveWire revenue, we think the company must either 1) sell one of its businesses or 2) raise capital. The raising of capital, if possible, could be dilutive to current shareholders. Regarding the sale of one of the company's businesses (NMS Communications or LiveWire), we doubt that management could raise enough cash to meaningfully increase shareholder value. We find this situation frustrating and we are very disappointed."
NMS Communications Corporation is a leading provider of DSP-based enabling technology platforms and systems to communications equipment vendors.
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