Following the company's first quarter results, Haywood analyst Daniel Rosenberg has lowered his price target on VOTI Detection (VOTI Detection Stock Quote, Chart, News TSXV:VOTI), though the analyst still thinks the stock is a buy. On Monday, VOTI reported its Q1, 2020 results. The company posted a net loss of $2.22-million on revenue of $6.04-million, a topline that was down 11.2 per cent from the same period a year prior. "While our first quarter results were lower when compared to the previous fiscal year, as I've mentioned previously, our performance can fluctuate quarter to quarter as orders shift from one quarter to the next and the mix of products delivered in one quarter can significantly impact overall revenue and margins on a comparative basis," CEO Rory Olson said. "Our customer base continues to increase, and most importantly, we have seen repeat orders from customers within the new verticals that we penetrated over the past twelve months. Our order for 34 scanners from the Tamdeen Group in Kuwait is a clear illustration that we are making important strides on a global scale. Rosenberg said there are many things to like about VOTI, but the stock has become riskier of late. "VOTI reported Q1 results (ending January 31, 2019) with financials coming in slightly below expectations," the analyst said. "Management suspended guidance given uncertainty around COVID-19 and implemented a cost control initiative that should save $1.5M. With the current backlog, the new cost structure is expected to lead to positive Adj. EBITDA by the end of FY20. The Company is in discussion with lenders to secure financing. While the near-term may be volatile with the impacts of COVID-19, shares have been oversold. For patient investors, VOTI shares appear to offer a substantial discount. We adjusted our forecasts to account for the near-term risks, resulting in a new target price of $2.00 ($3.30 previously), which offers a substantial upside from current levels. We continue to have a Buy rating, and we increased our risk rating to Very High (from High previously)." Rosenberg's new target implied a return of 208 per cent at the time of publication. The analyst thinks VOTI will post an Adjusted EBITDA loss of $800,000 on revenue of $27.2-million in fiscal 2020. He expects those numbers will improve to EBITDA of positive $1.2-million on a topline of $30.7-million the following year. "VOTI is in the early days of establishing itself as a leader in the threat detection market," the analyst concluded. "The Company is seeing strong traction of its differentiated technology with marquee customers. We expect continued innovative product development to accelerate growth and drive profitability in the long-term."