The company also provided Q1 guidance and an update on measures they are taking to save the company from going under.
The Q1 guidance wasn't very good ($7 million in revenue; down almost 30% versus Q4 and a loss of $0.8 million).
The measures they outlined were more promising. Headcount reductions and expense cuts are expected to lower annual expenses enough to get the company back to profitability. Of course, that assumes that 1) its current visibility into revenue holds up and 2) it isn't forced into bankruptcy by Sovereign Bank.
Overall, the press release reads well and provides hope for the company. This is juxtaposed against Friday's discouraging NT 10-Q filing with the SEC, along with the 10-K, which revealed some ugly truths about how bad things were allowed to get under former-CEO James Molinaro.
Net-net, we now believe the odds of bankruptcy are about 20% (versus the 10% estimate we originally provided).
See our weekend update for more and stay tuned for the earnings call today at 2PM ET.