From Baron Funds' second quarter commentary:
Velti plc (VELT), a leading mobile marketing company, saw its shares decline significantly during the second quarter over concerns regarding the company's extended receivables cycle and the related impact on cash flow. Following the quarterly results announcement, the company publicly explained to investors that its receivables cycle was driven by the company's European business – where longer payment terms is the general practice – and the nature of its performance-based business, where it bills clients after campaigns conclude and results are demonstrated. The company also announced a plan to improve invoicing and collections in order to reduce receivables meaningfully in upcoming quarters, and also reiterated its guidance to generate positive cash flow from operations by the third quarter and free cash flow by the fourth quarter. (Ashim Mehra)
Velti plc (VELT), a leading mobile marketing company, saw its shares decline significantly during the second quarter over concerns regarding the company's extended receivables cycle and the related impact on cash flow. Following the quarterly results announcement, the company publicly explained to investors that its receivables cycle was driven by the company's European business – where longer payment terms is the general practice – and the nature of its performance-based business, where it bills clients after campaigns conclude and results are demonstrated. The company also announced a plan to improve invoicing and collections in order to reduce receivables meaningfully in upcoming quarters, and also reiterated its guidance to generate positive cash flow from operations by the third quarter and free cash flow by the fourth quarter. (Ashim Mehra)
