PNWIF came out with its Q1 numbers today- as usual, right up against its reporting deadline in Canada, and way past the deadline the company would have as a US domiciled company. As they now own UK based Pixology, and operate in both the US and Canada, and are now headed to Argentina, I can understand the challenges of putting it all together. However, lots of other International companies do it efficiently, so this is an area that needs improvement.

In short, a quick review of the press release suggests the following: PNIWF gets an A+ for top line growth, a B+ for balance sheet, and a B- for profits.

The top line numbers for the Holiday photo processing business came in at $4.3 million- up from $1.5 million the same quarter in 2006- this is just outstanding growth- the kind of growth the market will pay up for.

On the balance sheet side, PNWIF ended up with about $11 million in cash and receivables, against $7.4 million in current payables-that’s about $3.6 million in real cash- not bad when you factor in the Pixology acquisition.

The company generated about a $1 million loss, but had nearly $1 million in non cash amortization expenses- suggesting the quarter was about a break even from a cash flow point of view. It would have been nice to see a profit, but the company is thinking a bit longer term, and invested a fair amount in R&D- about $1.5 million. Much of this expense can be attributed to the build out for Costco and Sam’s Club.

Here’s a look at the chart:

PNWIF is trading right in the middle of its moderately ascending triangle. That’s what good numbers will get you in today’s market- a stock that doesn’t go down.

Today’s numbers seem to be a non event for the stock price. If you have a long term perspective, $10 might be a realistic target.

Again as with most other stocks I am watching, if you are looking for a short term trade, it will be tough. The market is to blame, not PNWIF- PhotoChannel is moving in a great direction, and these numbers should start getting a lot better - Q4 and Q1 ‘09 (Sept to Dec) should both be big relative to the previous year.