Black Box Corporation (NASDAQ:BBOX): Micro-cap Black Box shares plummeted more than 20% due to subpar results for the fourth quarter of fiscal 2018. The micro-cap tech company is struggling to impress investors with its future fundamentals and business strategies over the last couple of years.
Micro-cap Black Box shares lost 70% of value in the last year alone, and the stock is down almost 94% in the past five years. BBOX stock hasn’t been receiving support from its businesses and financial numbers. The lack of innovation and market competition has been significantly impacting its revenue base over the last five years.
Fourth Quarter and Fiscal 2018 Results Weighed on Sentiments
The company has reported a 6% decline in its fourth-quarter revenues, the fourth straight quarter of year-over-year decline in revenues. Both of its legacy unified communication business and incremental projects business recorded lower revenues compared to last year. Black Box losses are also widening due to tumbling revenues and higher costs.
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The micro-cap company has posted the net loss of $51 million in the fourth quarter as compared to the loss of $1.8 million in the same period last year. The net loss was standing around $100 million for the full fiscal 2018 from a loss of $7.1 million in 2017.
Micro-Cap Black Box Shares Outlook is Bleak
Although the company has been actively working on restructuring plans, the short-term outlook for Black Box isn’t persuasive. The company expects a steady year-over-year decline in its revenues in fiscal 2018.
The CEO Joel Trammell says, “We have many work streams in the process that are intended to restore the profitability and financial health of Black Box. Our Credit Agreement Amendment was the first step, and the sale of our Federal Business will be step two.”
The company is planning to sell assets and minimize focus on low growth businesses to support their cash position. By and large, micro-cap Black Box shares are unlikely to receive support from its financial numbers in the short-term.
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