Intrinsyc Software International, Inc. (TSE:ICS) (PINK:ISYRF) rolled down today in reaction to the first quarter financial results.
ICS stock tanked 11% today, despite the promising, resistance breaking price action from yesterday. Trading volume was twice the average 905 thousand yesterday and continues to challenge this level today as well.
Despite the heavier than normal trading, the price action didn’t really stand out from the generally volatile historical performance. The stock is bouncing the resistance at 10.5 cents since early April, so decline below that level is unlikely.
The price rolled down as ICS announced their first quarter financial results. The books weren’t very bad, but didn’t show much improvement either:
- Revenue was down 25.7% to $2.6 million compared to Q1 2010;
- Gross margin dropped 5% to 55%;
- Operating expenses went down 26% to $1.2 million;
- Working capital increased 4.3% to $12.1 million.
The management stated that during the quarter they have renewed an agreement with a Fortune 500 company. The deal should be worth 10% of the company’s projected annual revenues. At the same time Intrinsyc also signed an agreement with an automotive system integrator, which should help to adapt and license their Destinator navigation software.
