Ergo, Barnicle says he expects margin improvement in its fiscal Q2 ending July, and in the second half.
“While this quarter may not be the breakout quarter,” he writes, “one is coming. Wind river has turned over 50% of its sales force. One-third of the new sales reps are still ramping. Its VxWorks business remains strong, and its Linux business is still ramping. So there is likely to be a breakout quarter over the next six months.”
Barnicle set a $13 price target on the stock.
WIND 1-yr chart: