Recent Disruptive Product Launch Is Underappreciated Growth Catalyst For Interphase
- The 42% drop in the stock over the last two months is an extreme overreaction to the slow roll out of the Penveu product line.
- This line could potentially double revenue by 2016 as the revolutionary technology and competitive advantages disrupt the $1.8 billion interactive whiteboard market.
- Revenue in the electronics manufacturing services business has increased >6x since 1Q12 and is expected to double in 2014.
- The ongoing weakness in the higher margin communications networking business should reverse in the near term after one of the largest customers resumes purchases.
- This increased revenue, significantly lower OpEx, net cash position (minimal interest expense) and $48 million of NOLs should help Interphase reach profitability sooner than expected.