GeoTeam Waiting on Firstime Design Ltd (OOTC:FTDL) New Growth Plan to Bear Fruit

Our initial optimism and reasons for coding of FTDL as a GeoBargain were based on the company rebounding from its restructuring process with a new growth model in place and the company continuing to have the maximization of shareholder value in mind as was the case with its special dividend announcement on 2/12/2014.  The company has had a hard time sustaining sales and earnings growth since we coded it a GeoBargain on 2/13/2014 at $4.00. The company is now embarking on a new online strategy to accelerate growth and broaden its customer base.  Heading into the holiday season, we feel it is great opportunity for FTDL to test new online strategy.  We will give management more time to execute its plan.

Today. FTDL reported  Q3 2014 results.

  • Q3 2014 revenues of $1.8 million vs $2.2 million in the prior year period
  • Q3 2014 EPS of $0.13 vs $0.16 in the prior year period

Quotes from management:

“The slight decrease in sales was due in part to some of the challenges facing the retail segment. This included slower than expected foot traffic, which was combined with the up and downs of consumer spending and confidence. In an effort to improve on sales we have implemented a new strategy, which allows us to strengthen our position and presence in the e-commerce arena. In a short time we have developed a number of new online relationships and we believe this expansion will afford us the opportunity to broaden our market presence, produce a new means of revenue and create a more sustainable business that is less reliant on a few major customers.”