Telular Corp. has a market cap of $64.8 million; its shares were traded at around $4.34 with a P/E ratio of 21.7 and P/S ratio of 1.4.
Highlight of Business Operations:Offsetting these reductions was a $15 increase in credit card fee as a result of increased activity and a $40 increase in non-income business taxes reflect the finalization, and reduction, of Singapore taxes in the first quarter of fiscal 2009.
Other income for the three months ended December 31, 2009 increased $22 to $98 from $76 for the same period of fiscal 2009. The increase was primarily due to a loss of $48 related to the disposition of capital assets in fiscal 2009 and a decrease of $22 of interest income as a result of lower interest rates.
Management regularly reviews net working capital in addition to available cash to determine if it has enough cash to operate the business. On December 31, 2009, the Company had $20,770 of unrestricted cash and cash equivalents and working capital of $30,150, compared to cash and cash equivalents of $17,904 and working capital of $28,666 on September 30, 2009. The Company can draw upon a Loan and Security Agreement with Silicon Valley Bank that provides an aggregate working capital line of credit up to $10,000. Management expects trade accounts receivable and inventory to turn into cash in short periods of time. As such, given the level of cash and cash equivalents, trade accounts receivable and inventory, management believes the Company has adequate resources to fund current and planned operations in a manner consistent with historical practices.
Investing activities used $194 of cash for the first three months of fiscal 2010 from the acquisition of capital equipment. This compares to cash used by investing activities of $2,410 for the same period of fiscal 2009; $2,179 from the acquisition of TankLink and $231 from the purchase of equipment.
Financing activities generated $40 of cash for the first three months of fiscal 2010 from the exercise of stock options. For the same period of fiscal year 2009, cash of $1,798 was used by the Company to pay down $923 of notes payable, which were acquired in the TankLink purchase and the repurchase of its common stock on the open market of $875.
In July 2008, the Board of Directors approved a stock repurchase program for up to $5,000 of the Companys common stock. There were no shares repurchased during the first quarter of fiscal 2010 under this program. The approximate dollar value of shares that may yet be purchased under the program is $1,225 as of December 31, 2009.
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