Via themicrocapspeculator.blogspot.com:
After the bell, Littlefield Corp : LTFD.OB posted second quarter earnings of $.034/share, slightly higher than Q1 but lower than last year’s $.057, on strong revenues of $3,668,170. The earnings shortfall was caused by a 64% increase in overhead, consisting of additional staff, increases in compensation, and other corporate expenses, as well as increased interest costs due to the company’s legal settlements.
CEO Jeffrey Minsch said “Overall, our second quarter performance was the highest second quarter level of revenue and gross profit in the past five years. We saw continuing substantial gross profit increases in every Entertainment business unit - Texas, South Carolina and Alabama bingo. Each of these posted double digit increases in gross profit. This is a very good performance!”
As a shareholder, I don’t share Minsch’s enthusiasm about this quarter’s results. There were some bright spots, but overall it could have (and should have) been better. I’m specifically disappointed by the continued litigation expenses, which were actually up about 90% year-over-year, despite settling most outstanding litigation in the interim. Those costs should be declining.
Bottom line: the quarter was OK but not great. Shares may retreat a bit over the next week, but I didn’t see anything here that should cause lasting damage.
DISCLOSURE: long LTFD.OB.
$1.18 (07/26/07)
