STRM – Q1 2007 Earnings

By: ispeculatornew
Date posted: 07.01.2007 (12:00 am) | Write a Comment  (0 Comments)

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STRM – Streamline Health Solutions (Nasdaq) (Closing Price on Friday 6/29/07 – $4.19)

Streamline Health released first quarter earnings on May 21 and once again they reported disappointing results.

Streamline Health reported revenue of 3.78 million and a loss of 0.05 per diluted share. They blamed the disappointing results on “protracted negotiations on two large system sales.” However, they said they were confident the sales “will successfully conclude in our second quarter, allowing the company to meet its first half expectations.”

I think the stock price can recover to the five to six dollar range if they complete their sales so I would recommend continuing to hold until next quarter. I wouldn’t recommend buying any more shares because they have missed their guidance a couple of quarters in a row so there is a chance they will miss again. If you think you can make a better return in another stock I would recommend selling your shares (I did sell my shares for that very reason).

I probably will not provide another update until after the second quarter results are announced. However, if the two contracts get delayed again next quarter I am going to recommend to sell.

Disclosure: I have no position in STRM.

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