Oppenheimer Maintains Perform on Camelot Information Systems

Oppenheimer is out with its report today on Camelot Information Systems CIS, maintaining Perform. In its report, Oppenheimer writes, "CIS delivered disappointing 2Q11 results and reduced revenue/EPS guidance by 4%/25%, respectively. Management outlined various reasons for the reduced guidance including contract/booking delays, capacity constraints related to employee turnover and internal investments. While early, management believes a majority of these items are temporary and expects margins to normalize in 2012. CIS continues to diversify its business mix as its top five customers accounted for 48.5% of revenue (vs. 53% in 2Q:10). Shares trade at 8.7x and 7.2x our reduced FY11 and FY12 EPS estimates; maintain Perform rating." At the time of posting, shares of CIS were trading at $6.35, up 0.47% from Thursday's close.