(Geeknet:GKNT) A Geek Tragedy...Turnaround?- Q1/FY Ending 03/31/12
GKNT Q1 2012 ending Mar 31 2012 Numbers and Conference Call
Katy 4:44/23:52. Financials.
6:20 Thinkgeek's product gross margin was 23% v 20% q1 2011. q1 overall gross margin was 15% v 10% q1 2011
7:00 Thinkgeek...the number of daily unique visitors (q1 2012 v q1 2011) grew by 56% to 21.2M
7:53 SourceForge download page views were down 16% at 197M. Our monthly unique visitors were 45.6 million down 8%
8:44 R&D expenses were up 93% (primarily due to investments in GeekLabs and Media engineering)
8:51 We ended the quarter with cash and investments of $32.5M* (actually $38.5M*)
*9:21 One last comment about cash, as we disclosed previously, after the quarter ended (Apr 4) Geeknet sold its Pfd stock investment in Collabnet to a 3rd party for $6 million. The carrying value at the time of the sale was $2M and therefore a gain of $4M will be recognized as other income in the 2nd q of 2012...Note: gnulaw exclusively followed and broke the news with this PFD stock investment and sale
13:46 Jeff Drobick...16:05 Intel GoParallel program a fullblown website dev by geeknet media on behalf of an exclusive sponsor...Intel
17:19 Open the line for questions...
17:41 James Dobson of Benchmark
20:20 Media Business...excellent question from Dobson to Jeff Drobick on German SourceForge launch, SlashdotTV, and SlashBI.
1, GKNT Board and Sr Mgt intentionally downplayed/buried their $6M cash gain and $4M gain to the pending Q2 ending Jun 30 bottom line. Why? Deferring to Q2 to mark GKNTs formal turnaround?
2. Positive: Margins improving, Media alliances/new products positive. Very strong people associated with Geeknet Media.
3. Concern - Colon Washburn as CEO of ThinkGeek (maybe COO) and retaining key ThinkGeek people.**
4. Langone should promote Drobick to CEO of GKNT (including ThinkGeek) and step down as CEO, at the latest, contemporaneous with Q2 2012 earnings releas, remaining Chairman. Shareholder value will accordingly become fully valued.
5. Concern - SourceForge declining download page views and declining monthly unique visitors.
It appears GKNT Mgt is positioning Q2 ending June 30 2012 with a substantial earnings surprise and or as their stake in the ground that they will be profitable going forward.
EBITDA EBITDA EBITDA, THAT'S ALL FOLKS!
1. May 04, 2012 OpenOffice Moving to Sourceforge By Sean Michael Kerner - From the 'Does Sourceforge Matter Anymore?' files.
2. Feb 18, 2012 (Update2) (Geeknet:GKNT) A Geek Tragedy - Q4/FY Ending 12/31/11
3. Q2 2011 ending June 30 numbers (for reference with GKNTs pending Q2 2012 quarter).
**4. John Frazier (@Fraize) 10/1/10 5:52 PM
I adore going back in time, reading GKNT stock watcher's "predictions" and laughing at how totally absurdly wrong they were. © 2010 - 2012 Twitter