At $35m, revenue was actually quite strong - which does not agree with Management's excuse about revenue being deferred.
It may have been that investing ahead of revenue has meant that profit is current extremely sensitive to revenue changes, such that say a $5m revenue increase would have dropped down to say a $2.5m profit increase (ie annualised gives you $80m / $10m).
I still can't believe Management didn't know about this until 2 days before Xmas, even if they had won work last week/2 weeks ago, there would have been pretty much no time left in the year to kick off the project, let alone invoice any work. Combined with the fact that everything was apparently in November, either suggests that Management is not on top of their internal reporting, or there is another driver to the major margin decline.
RXP Price at posting:
37.5¢ Sentiment: Sell Disclosure: Not Held
