This looks to be a pretty high quality business. Strong cash flow generator, margins are improving, earnings improving.
The only difficulty I can see is that the company's revenue is declining. There are only so many things you can do to improve margins until you ultimately need sales to improve.
I think the company's fall over the last bit here has been nothing more than a valuation reset to get the company down to a more normalized price.
It looks like a fairly interesting company with a lot of runway left. However, as a small cap company if I owned it, it would be a very small portion of my portfolio as I do with other small caps.