Sonic Foundry (SOFO)

The Good: B/E is optimistically expected sometime soon.

The Bad: While reducing expenses via staff reductions, SOFO is still losing money.

The Ugly: SOFO has never experienced B/E in its entire publicly-traded history. Never...*

• Sonic Foundry narrows 2Q loss to $152,000, or "zero cents a share, compared with a net loss of 2.3 million, or 6 cents per share, in the same period the year before" - The Business Journal of Milwaukee, Tuesday, May 5, 2009, 4:34pm CDT

(Originally posted in neutral article section when SOFO was $0.75 - moved here to maintain objectivity)

Technically speaking, SOFO did NOT achieve B/E as the company lost $152,000 during the second quarter of its fiscal year. However, when this loss is distributed over all the company's shares, the result is a net loss of $0.00/share (compared with last year's Q2 loss of $0.06/share). More importantly, revenue for the second quarter grew from $3.9M in 2008 to $5.4M this year.

Most Bulls are optimistic today's results could finally be cause for celebration, despite (or because of) the economic downturn in the world. As demand for the products and services of other companies is weakened, SOFO has potentially poised itself to capitalize on the growing demand for "distance education/training." This optimism is tempered by the fact the company has yet to do better than Pro-Forma B/E.