Route1 Inc. (CVE:ROI) (PINK:ROIUF) stock price slid down over the past two sessions in reaction to the third quarter results the company posted on Thursday.
ROI dropped another 4.5% lower on Friday adding to the initial 15% drop. The trading volume was significant 394 thousand. The stock price broke outside the general downtrend under a serious collapse which might in turn provide healthy opportunities for bulls once this initial panic wears off.
On November 24 ROI announced results for the three month period ended September 30, 2011.
- Net loss was $627 thousand, half the $1.16 million in red recorded over Q3 last year;
- Revenues were $1.4 million, only slightly higher than $1.38 million recorded in Q3 2010;
- Ended the period with $23 thousand in cash;
- Had a working capital deficit of $851.6 thousand.
The company recorded a troublesome increase in receivables which currently top $1.05 million and mostly come from not yet provisioned U.S. navy clients. More than third of the loss ($261 thousand) for the quarter came from a severance charge on an employment termination of the previous Chief Technology Officer.
The announcement also pointed out resignation of Amar S. Doman from Route1’s board of directors, which happened on November 23.
On a slightly more positive newsfront, on October 4 Route1 secured a $550 thousand credit facility which temporarily solved the problem of the diminished cash position.
