Buy Signal on SQLI (SQI-FR)
SQLI is a € 95 million market cap and specializes in the development of Internet technologies. The group's activity is organized around 2 poles: 1/ design and integration of Internet technologies including the development and integration of information systems, implementation of Internet applications, implementation of software solutions, etc. 2/consultancy services including audit of business management processes, advice in the choice of technical architectures for information systems, definition of security policies (hardware, software and applications), etc. The geographical breakdown of sales is made of France (63%), Switzerland (16%) and other Europe (21%).
SQLI reported H1-2020 revenues of €110.3 millions, down 10.3% yoy (-13.3% at constant scope and exchange rates). Thanks to the cost measures implemented, SQLI is forecasting a positive half-year operating result (EBIT).
Short term catalyst: cost cutting, cash-flow generation.
This signal looks consistent with the positive momentum on the IT/Software sector.