- Adesto has acquired two smaller companies (Echelon is still pending, but expected to close this quarter).
- This will certainly propel Adesto forward through multiple opportunities for synergies and cross-selling and higher gross margins.
- Management sketches an attractive financial picture with gross margins at 50% by Q4 and EBITDA and operating margins at 20%+ when the acquisitions have been absorbed.
- That’s certainly possible, but we can understand if investors want to see some actual improvements before jumping in.
Source: Adesto’s Acquisitions Will Propel The Company Forward – Adesto Technologies (NASDAQ:IOTS) | Seeking Alpha
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