Nexient has 2nd consecutive decent quarter

One of the tasks at any fund is managing the existing portfolio. Something that can be fun or taxing, depending on the situation. It is fun when the management team begins to realize on some of their hard work, as the team at Nexient Learning (NXN:TSX) is starting to do. The first quarter of 2007 came out a few hours ago, and CEO Colleen Moorehead’s cost cuts have started to have a positive financial impact, without hurting gross margins. Here are a few highlights from the quarterly financial results:

– share of wallet appears to be up with their top 10 customers
– although revenue was generally flat, EBITDA grew by 29% and is now over $1.1MM
– A/R and A/P balances both improved, which is usually a sign of a healthier climate
– this was the second consecutive quarter of positive free cash flow
– gross margins are still well over 50%
– no further restructruing charges from the 2005 CDI acquisition
– no update on the Newpoint process

Congrats to Colleen, Donna and the rest of the management team on the progress.

MRM
(disclosure – NXN is a Fund II portfolio co. and I’m on the board)