No turnaround in sight just yet, but then again, the market doesn’t seem to be pricing one in either. It does make me wonder a bit why the EBITDA margin is declining alongside revenue, if they are shedding low-margin revenue. Despite this, the company seems to have a good drive going, and in my opinion, the strategy has huge potential.
Considering the AMD partnership, I think the earnings report was cautiously positive, and all eyes are firmly on Q4. If revenue continues to decline and there is no improvement in profitability, I’ll start sweating too. The company has massive operating leverage if margins actually begin to expand. In my view, there is also the possibility of a takeover bid if the valuation remains at current levels.