Sounds like a winner in today's market, right? Well, Sycamore isn't living up to the hype.
Despite significant contracts with mobile operators Sprint Nextel
Under such circumstances, you often hear management talking up how nicely things are really working out underneath it all and how strong the business will be in coming quarters. Not Sycamore; CEO Dan Smith says that customer interest in IQstream is high and exciting, but the quarter's results "reflect the continuing market challenges" in that core business.
Sycamore has a lot of cash left over from the glory days a decade ago, but it's melting away. The company is cutting costs and jobs, hunkering down for some more lean years. Maybe management is content to just cash their paychecks until the bank vault runs dry. Investors aren't getting anything out of owning the stock, anyhow.
Like Extreme Networks
Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Fool has created a bull call spread position on Cisco Systems. Motley Fool Alpha owns shares of Cisco Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.