News

DecisionPoint Systems DPSI reported a first-quarter 2024 loss of 11 cents per share against earnings of 11 cents a year ago. The Zacks Consensus Estimate was pegged at earnings of 6 cents per share.

Revenues decreased 5.3% year over year to $25.6 million and lagged the consensus mark by 0.9%.

Despite a positive shift in gross margin due to the emphasis on services and software, the lack of significant hardware solutions businesses in the first quarter negatively impacted DPSI’s results. However, the company was effective in reducing its debt by more than $1.6 million.

Recently, DPSI had announced that it has inked a definitive agreement to merge with an affiliate of Barcoding Holdings, LLC ("Barcoding"), in an all-cash transaction. Consequently, stockholders will get $10.22 in cash per share under the terms of the agreement, which is about a 27% premium over the closing price of $8.05 on Apr 30, 2024. Upon successful closing of the deal in July 2024, DPSI’s stock will no longer be traded publicly.

Quarter Details

Hardware and Software revenues (54.2% of total revenues) declined 32.4% year over year to $13.9 million.

Consumables (5.6%) fell 12.4% year over year to $1.4 million.

Professional services (40.2%) increased 111.4% year over year to $10.3 million.

Operating Details

DecisionPoint’s first-quarter gross profit decreased 0.6% year over year to $6 million.

Total operating expenses surged to $6.9 million from $4.86 million in the prior-year quarter due to an approximately 65% increase in general and administrative expenses.

Operating loss was $0.9 million against operating income of $1.188 million in the previous quarter.

Balance Sheet and Cash Flow

As of Mar 31, 2024, DecisionPoint had cash and cash equivalents of $5.8 million compared with $4.3 million as of Dec 31, 2023. The company’s long-term debt was $3.4 million compared with $3.6 million as of Dec 31, 2023.

During the March quarter, cash flow from operations was $3.2 million against cash utilization of $1.5 million in the prior year quarter.

Zacks Rank

DecisionPoint carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

BlackBerry’s BB fourth-quarter fiscal 2024 adjusted earnings of 3 cents per share beat the Zacks Consensus Estimate by 200%. The bottom line improved from the prior-year quarter’s non-GAAP loss of 2 cents per share.

BB has lost 40% in the past year against the sub-industry’s growth of 33.6%. In the last quarter, it delivered an earnings surprise of 200%.

Blackbaud BLKB reported first-quarter 2024 non-GAAP earnings per share of 93 cents, which surpassed the Zacks Consensus Estimate by 9.4%. The bottom line increased 29.2% year over year.

Shares of BLKB have gained 9.1% compared with the sub-industry’s growth of 33.6% in the past year. In the last quarter, it delivered an earnings surprise of 9.4%.

Cadence Design Systems CDNS reported first-quarter 2024 non-GAAP earnings per share of $1.17, which beat the Zacks Consensus Estimate by 3.5%. However, it decreased 9.3% year over year.

In the past year, CDNS has gained 43.6% compared with the Zacks sub-industry’s growth of 33.6%. It currently has a long-term growth expectation of 17.8%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.