Needham & Company Maintains a 'Hold' on Valence Technology (VLNC); Sluggish Near-term Demand
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Price: $0.65 --0%
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Valence Technology (NASDAQ: VLNC).
Analyst, Michael, Lew, said, "Sluggish demand clearly impacted the latest quarter of results with no signs of relief in the near-term. Segway, Rubbermaid, PVI and Howard Medical were the major revenue contributors accounting for 2/3rd of quarterly sales. In our view, Valence Technology should financially benefit from commercial programs that its products have been spec’d in to. However, the timing is uncertain."
"The company reported inline revenues of $8.5 million (down 38% y/y) with EPS loss of $0.01, which was better than our $0.02 loss estimate. However, gross margin was much lower than anticipated at 7.9% (vs. our 20% expectation) due to low utilization rates. While the company has multiple potentially high volume initiatives, visibility into commercial order flow is unclear. We are revising our near-term estimates to reflect the limited financial visibility combined with industry pricing pressures." (Needham lowers FY13 EPS from $0.03 to a loss of $0.03)
For an analyst ratings summary and ratings history on Valence Technology click here. For more ratings news on Valence Technology click here.
Shares of Valence Technology closed at $1.04 yesterday.
Analyst, Michael, Lew, said, "Sluggish demand clearly impacted the latest quarter of results with no signs of relief in the near-term. Segway, Rubbermaid, PVI and Howard Medical were the major revenue contributors accounting for 2/3rd of quarterly sales. In our view, Valence Technology should financially benefit from commercial programs that its products have been spec’d in to. However, the timing is uncertain."
"The company reported inline revenues of $8.5 million (down 38% y/y) with EPS loss of $0.01, which was better than our $0.02 loss estimate. However, gross margin was much lower than anticipated at 7.9% (vs. our 20% expectation) due to low utilization rates. While the company has multiple potentially high volume initiatives, visibility into commercial order flow is unclear. We are revising our near-term estimates to reflect the limited financial visibility combined with industry pricing pressures." (Needham lowers FY13 EPS from $0.03 to a loss of $0.03)
For an analyst ratings summary and ratings history on Valence Technology click here. For more ratings news on Valence Technology click here.
Shares of Valence Technology closed at $1.04 yesterday.
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