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.