Redeye states the report was weak, and it is apparent that InfraCom struggles with its Connect acquisition (further write-down of earnouts) and the departures of two entrepreneurs of two acquired companies. Although InfraCom faces significant challenges, we believe the subscription-based income streams remain relatively strong, and today’s sell-off may be a good entry point for long-term investors. Redeye expects to reduce its estimates and its fair value range.
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