Okee, careful with accounting, profit margins of 25% does not means profit after taxes of 25%, it means margins, from which you have to subtract, SG&A, depreciation, and if they have any, R&D, then you take about 60% of what is left to account for taxes. In their case, because the base of sales is so small, the SG&A itself could easily reach 15% to 20% (between $600 K and $800 K ) leaving much less than my generous assumptions did. Furthermore, the $4.2 MM is coming from a company that has yet to deliver on a single promise,, so I would say, show me the last quarterly results and a trend that demonstrate they are getting there.
Zeev |
