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That seems about right. Or, in short, their product has become a commodity, they aren't the low cost producer, and they don't have the structural flexibility to adapt quickly enough.

Whether to see this as a short-term problem or something much more fundamental (management's inability to structure and run the business for a product that doesn't have intrinsic barriers to entry and which is in an obviously competitive environment) remains the question.

Unfortunately, I'm inclined towards the latter. This is isn't the first time this set of excuses/explanations has been offered. Remember, it was only last quarter they were saying the revenue miss was an order timing issue and they maintained existing guidance...

As that keeps happening, it isn't a "timing" problem, its a business problem.

Holding, for now...
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