Cartesian Inc. (NASDAQ:CRTN)

Cartesian Inc. (NASDAQ:CRTN) Delisting Woes Compounded By Q3 Earnings

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.

Don’t miss out! Stay informed on $CRTN and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Cartesian Inc (NASDAQ:CRTN)

Delisting Cartesian Inc (NASDAQ:CRTN) Stock Booms!

Cartesian Inc (NASDAQ:CRTN)

Cartesian Inc (NASDAQ:CRTN) stock nearly doubled on Friday even though there was no news released by the company or reported by any of the major news services. CRTN shares closed at $0.26 on Thursday then gapped up to open on Friday at $0.29, hit an inter-day high about one hour into trading at $1.00, and closed the session at $0.51.

The company will be announcing their Q3 2017 financial results after the market closes on Monday, November 13, 2017. A conference call to explain the results will follow.

Cartesian Inc (NASDAQ:CRTN) provides global consulting services, and managed solutions, to companies in global communications, technology and digital media. Cartesian services include strategic advice, management consulting, and managed solutions. The company has offices in Boston, Kansas City, London, New York, and Philadelphia.

CRTN Delists

On November 2, 2017, Cartesian Inc (NASDAQ:CRTN) notified the Nasdaq Stock Market that it would voluntarily delist its common stock at the close of business on November 13, 2017. Cartesian is currently taking the steps necessary to have its common stock begin trading in the OTCQB Market, operated by OTC Markets Group.

Cartesian’s Board of Directors approved the voluntary withdrawal of the Company’s common stock from listing on the NCM as a result of numerous factors, including its assessment of the probability of the Company’s regaining compliance with the Rule and complying with certain other Nasdaq quantitative requirement.

 

CRTN Stock Performance

Q2 2017 revenues decreased by 31% to $13.0 million from $18.9 million for the same period in 2016. Q2 2017 net loss was (-$1.4) million, or (-$0.16) per diluted share, compared to a net loss of (-$12.9) million, or (-$1.49) per diluted share in Q2 2016.

Follow the company’s Q2 earnings release, CRTN stock traded, mostly in a range between $0.50 and $0.70 through the end of October. Then at the beginning of November, CRTN shares dived below $0.30 until the massive upward move last Friday. Year-to-date, CRTN stock is down 44%.

Sales increased from 2012 when the company reported sales of $53 million, until 215 when the company posted sales of $78.3 million. Then, in 2016, sales decreased to a figure of $71.7 million.

Earnings have been worse. They have not produced positive earnings in the past five years. The per share loss expanded from 2014 (-$0.18) to a figure of (-$1.81) in 2016.

No investment analysts follow the firm – likely due to the fact that its market capitalization is below $5 million.

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.

Don’t miss out! Stay informed on $CRTN and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.