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DecisionPoint (DPSI) Swings to Loss in Q4, Revenues Decline Y/Y

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DecisionPoint Systems (DPSI - Free Report) reported fourth-quarter 2021 loss of 10 cents per share. The company reported earnings of 8 cents per share in the year-ago quarter. The Zacks consensus Estimate stood at earnings of 4 cents.

Revenues declined 9.9% year over year to $16.5 million. The top line was affected by global supply chain headwinds stemming from pandemic-led disruptions. The company expects the supply chain woes to persist in the first half of 2022.

For 2021, DecisionPoint reported earnings of 19 cents per share, down 48.6% year over year. Revenues increased 3.9% to $65.9 million.

In the past year, the stock has lost 4.9% against the industry’s growth of 12.9%.

DecisionPoint Systems Inc. Price, Consensus and EPS Surprise

 

DecisionPoint Systems Inc. Price, Consensus and EPS Surprise

DecisionPoint Systems Inc. price-consensus-eps-surprise-chart | DecisionPoint Systems Inc. Quote

 

Quarter Details

Product revenues (76.6% of total revenues) fell 14.2% year over year to $12.6 million.

Service revenues (23.4%) increased 7.9% year over year to $3.9 million.
The company’s backlog stood at $31.2 million, driven by robust booking activity amid supply chain troubles.

The company is focused on "mobility-first services" and international expansion to boost the top line. Synergies from acquisitions are likely to drive DecisionPoint’s performance.

In January 2022, the company completed the buyout of Advanced Mobile Group. The acquisition boosts the company’s portfolio of mobility-first enterprise solutions and also expands its presence in the mid-Atlantic region.

Operating Details

DecisionPoint’s fourth-quarter gross profit decreased 15.7% year over year to $3.8 million.

Total operating expenses increased 32.2% year over year to $4.7 million.

Adjusted EBITDA declined 74.1% year over year to $0.3 million.

Operating loss came in at $0.9 million against an operating income of $0.9 million in the prior-year quarter.

Balance Sheet and Cash Flow

As of Dec 31, 2022, DecisionPoint had cash and cash equivalents of $2.6 million compared with $2.6 million on Sep 30, 2021. The company’s long-term debt was $0.15 million compared with $0.15 million as of on Sep 30, 2021. As of Dec 31, 2021, the company had no borrowings under the line of credit.

For 2021, cash flow from operations was $2.4 million, as against $4.2 million in 2020.

Zacks Rank & Stocks to Consider

Currently, DecisionPoint carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology sector are Broadcom (AVGO - Free Report) , Apple (AAPL - Free Report) and Arrow Electronics (ARW - Free Report) . All stocks carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.49 per share, up 7.4% in the past 60 days. AVGO’s long-term earnings growth rate is pegged at 14.5%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 1.9%. Shares of AVGO have increased 28.4% in the past year.

The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.16 per share, up 0.8% in the past 60 days. The long-term earnings growth rate is pegged at 12.5%.

Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average being 20.3%. Shares of AAPL have rallied 38.5% in the past year.

The Zacks Consensus Estimate for Arrow Electronics 2022 earnings is pegged at $18.48 per share, up 18.8% in the past 60 days. The long-term earnings growth rate is 3.1%.

Arrow Electronics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average being 19.1%. Shares of ARW have gained 2.2% in the past year.