exiting of high growth markets

Does any one not see this as a bit premature? Unless the company can sell the IP at a good price then surely this high turover business has to be good for cashflow if structured and run correctly.

In previous presentations did the company not say that the low margin portion of this business was the up front infrastructure which would then be followed by the higher margin tech? I am sure margins of 25%+ were mentioned somewhere.

Look I think the tech and IP in this stock is exceptional with really huge blue sky, however I want to know that there is no possible way that this area of the business couldnt be structured better to produce increased margins?

Part of my real belief in this company was its exposure to these ultra high growth markets and there huge infrastructure spending. This is spending on products which ARR develops and manufactures. India alone was talking about spending in excess of 10bil on wireless telephony and internet.
China had figures in the same realm.

We seemed to have significant contacts in both areas (with very strong contact in china through having both manufacturing there and also, to a lesser extent the JV).

I dont profess to know much about business (only what I have learnt in my 28 year life span), however to just flat out exit these markets after selling a significant amount of the low margin infrastructure and making the contacts seems crazy.

I know the business has been burnt by the Indian AR problem but surely with the bunch of obviously smart guys in the company we could learn from that experience and not make similar mistakes in the future.
Can we not leverage off what has been achieved so far?

Maybe I have misunderstood and the company is not talking about getting out of these markets (please some one correct me if I am wrong).

There whole earnings forecast previously was focused on these emerging markets and the tech we were delivering there, was it not? The company purposely did not include projections from laser tv. Now all of a sudden ARR shouldnt be in these markets and should be focussing on laser tv?

Maybe the new CEO has not divulged his plan entirely and I have grabbed the bull from the wrong end. All though I feel like I have turned up to the wrong party without knowing anyone and strangely, have a pair of bulls ba££s in my hand.


Thanks (the rambling man)