With new CEO seeing the company with his fresh eyes, I would expect some sort of 'restructuring' to happen, as well as more emphasis on the laser mass production side of things (with Novalux background).
But also in the light of how the market has penalised ARR for saying one thing and reporting (accurately) another, and not getting paid for the work already done, there HAD to be talk about that at the AGM because of the damage it has done so far.
Margins seem to be the key to profitability. If the margins are too small for making a reasonable buck at the end of the day why would you want to stay in a particular line of business. So that sounds sensible.
Right now ARR is selling below its book value. That makes it almost a free share for every two or three bought at current prices.
The stockmarket is, as some have said, a forward pricing mechanism. It's hard to fathom what to expect from the current CEO address about the future bottom lines. Guidance will be not said. So we really need up to date information to appreciate the changes, if possible to indicate as market info and perhaps with more positive measuring numbers.
Overall a tough start for the new CEO. Really an opportunity too since the situation and business requires the ship to be steered off in the right direction, building confidence in the products, the productivity improvements and more customers.
I'm sure they are very very much further ahead of a lot of things than what has been reported today, if the previous guidance spoke of NPAT of $17M-$20M by the end of 2008. (Huntley's has them to forecast earn 30c per share and forward PE at current price of 1.2) Whether that has been debunked now is still unknown by me at least.
