Seeking Alpha

Tangoe down after SA author calls its reporting "a farce," alleges cash position is collapsing

  • Shares of Tangoe (TNGO -5.8%) are falling after SA contributor The Forensic Factor calls the company's reporting "a farce," with EPS figures overstated by as much as 38% and a dubious restructuring charge inflating results.
  • The author also takes aim at the disconnect between the company's PRs and revenue generation, noting that annualized incremental revenue per customer has "declined percipitously in 2013" from $410K in 2012 to $109K in 1H 2013.
  • Another allegation: organic revenue figures are materially misstated with irregularities clouding Tangoe's acquisitions reporting.
  • The Forensic Factor continues that Tangoe's cash position is eroding (even as the company posts positive FCFs) with the imminent necessity of a follow-on.
  • What is Tangoe's intrinsic valuation? $3.92/share, the author concludes. Tangoe shares opened at $20.35.
Comments (1)
  • richie1974
    , contributor
    Comments (14) | Send Message
     
    Finally people are waking up to the tangos fraud. I'm a former employee of Tangoe, Inc as well as Bernard L. Madoff, LLC. I can certainly say these executives at Tangle needs to be in a jail cell right between Bernie and Peter. Where is the SEC during this scam? Probably spending their payoff. Tongoe is nothing more than a Ponzi scheme.
    31 Oct 2013, 06:52 AM Reply Like
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