Ashraf Eassa
Long/short equity, contrarian, independent research, tech

STEC: Stepping To The Sidelines On Continued Cash Burn, And Slim Recovery Prospects

In my recent piece, "STEC: Trading Near Cash Value, 140% Upside Potential By 2014", I painted a fairly optimistic view of STEC's (NASDAQ:STEC) chances at a successful - and profitable - turnaround. Unfortunately, the most recent earnings results, along with a fairly uninspiring conference call, have led me to believe that the initial thesis is unlikely to play out, and as a result am stepping to the sidelines on this name until tangible progress is observed as a result of the restructuring efforts.

Q4 Miss, And Low Q1 Guide Cast Doubt On Turnaround Prospects

STEC's business is fundamentally structured to breakeven at a $70M/quarter run rate. In Q4, the company posted sales of $35.1M (below guide...

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