Cartesian Inc. (NASDAQ:CRTN)
Cartesian Inc. (NASDAQ:CRTN) felt the wrath of Wall Street after reporting disappointing third quarter financial results. Shares of the company fell 21.55% after the Professional services and technical solutions provider reported a wider than expected net loss as revenues dropped 26%.
The stock is at risk of dropping to this year’s lows as short sellers continue to apply pressure. Investor sentiments on Cartesian Inc. (NASDAQ:CRTN) appear to have suffered greatly. For the full year, the stock is down by more than 50% as it continues to trade in a strong downtrend.
Cartesian Inc. (NASDAQ:CRTN) prospects in the market could turn from bad to worse as investors analyze the third quarter earnings report in a bid to ascertain its long-term growth prospects. Lower volumes of projects in North America and Europe resulted in revenues of $12.8 million representing a 26% decrease compared to the prior-year’s quarter.
Gross margin dropped to 32% compared to 35% in Q3 of 2016. Gross profit tumbled 33% to $4.1 million, compared to $6.1 million reported last year. General and Administrative expenses decreased 10% to $5.4 million primarily due to decreases in technology related expenses and foreign currency exchange.
GAPP loss from operations came in at (-$1.3) million compared to a GAAP income of $80,000 reported in the third quarter of 2016. The non-GAAP net loss totaled (-$1) million or (-$0.11) per share compared to a net income of $0.7 million or $0.08 a share reported last year, Cartesian Inc. (NASDAQ:CRTN) exited the third quarter with cash and cash equivalent of $2.5 million compared to 43 million at the end of the second quarter.
NASDAQ Delisting CRTN
Separately, Cartesian Inc. (NASDAQ:CRTN) is to cease trading in the Nasdaq Stock Market on November 13, 2017. The company’s board of directors has approved a voluntary withdrawal paving way for the company to list in the OTCQB Market.
Cartesian Inc. (NASDAQ:CRTN)’s exit from the Nasdaq Capital market does not come as a surprise. In May, the company was the subject of a non-compliance notice by the NASDAQ, on failing to maintain the minimum closing bid of $1 a share, over preceding 30 days. The company common stock will begin trading on the OTCQB starting November 14, 2017.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.