Tangoe shares fail to delight prior to earnings release

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Heading into the company’s quarterly earnings report, shares in Orange-based Tangoe Inc. failed to break free of the European malaise that has settled over Wall Street.

Tangoe reported revenues increased 53 percent from a year ago to $34.1 million as the company reported net income for the most recent quarter was $192,000. Last year, the communications and computer management serviced business, reported a loss of $613,000. Earnings per share using generally accepted accounting practices was zero, but better than the loss of 33 cents a year ago.

Wall Street was buffeted by news out of Europe, again, where the split parliament the Greek voters elected are struggling to form a new government there. Reports indicate a new election might be called as a result. Some analysts fear the Greeks are about to leave the EU and inflate their way out of debt, but one expert told The Mines, he thinks the Greeks are hoping if they continue to do nothing Germany will eventually just come in and rescue the country in a meaningful way.

This is the fifth straight day the Dow Industrial Average lost points. It fell 77 points to 12,932. The S&P 500 shed 6 points to stand at 1,364 and the Nasdaq Composite was off 11 points to 2,946.

Tangoe shares appear to have been following gravity with the rest of the market. Shares in Tangoe fell 18 cents to $19.30 before the company reported earnings.

While a U.S.-based company, Tangoe does have European operations and offers management services to help companies avoid seeing cell phone bills jump when they are in Europe for business.

Tomorrow, we’ll get a better gauge of how the market likes Tangoe going forward in this economy.

Categories: General, Wall Street
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Rob Varnon

One Response

  1. Tangoe Gonna' Sinko says:

    Is anyone really surprised by Tangoes lack of ability to be profitable. They spend a dollar+ for every dollar they take in and and increasing amount to keep that dollar. Their business model doesn’t scale at all. They are a nothing more than a ponzi scheme. Even their own statements say they do NOT use generally accepted accounting practices and when you do use them you see that the aren’t profitable. They are nothing more than a management machine. A shell of a company with nothing but “structure” they have no foundation what so ever. Any profit they do show are merely profits of a recently acquired company. This is why they need to an acquire one to two companies per year. They are not a technology company and when they do acquire a technology company all the tech talent gets out of dodge because of their lack of ability to understand and keep tech talent. Anyway, I’m just amazed at all the Wall. St. and investor gurus who keep giving them cash but when the federal government keeps bailing you out I guess you got nothing to loose.