Hi, All. A few thoughts about IOMG's earning.
From Fernando's analysis (#2965 or #3015), the revenue from disk is $79.19m for Q1 and $124.63m for Q2. Many people estimate the cost per disk is $2~3 and Fernando used revenue $11 per disk. If I take $3 cost, then I will get 8/11 -> about 70% earning. This gives us total earning from disk $55m for Q1 and $87m for Q2. Take away tax 39%, give us $33m for Q1 and $53m for Q2, or about $.27 per share (assume 119m shares) for Q1 and $.37 (assume 143m shares (from Joe Rizzo #2648)) for Q2.
If I take disk $5.5 cost, then I will get 50% earning. By same reasoning, I get $24m ($.20 per share) for Q1 and $37m ($.26 per share) for Q2.
For Q1, the street's (H & Q) estimate was $0.05 per share. Therefore, to beat the street, IOMG could get any earning values from $0.05 to $0.20 (or $.27). For some reasons (maybe reproduction, or future earning growth, or R&D ???), IOMG's earning was $.08 per share for Q1. For Q2, the street (H & Q) estimate is $.10 (Emerald $.11) per share. Therefore, to beat the street, IOMG can clain any earning value between $.10 to $.26 (or $.37) per share for Q2. I guess it could be about $.16 per share, which is good enough to beat the street and please the investors.
However, the earning is not that important to IOMG currently. These are the numbers to please the street managers only because they are interesting about P/E ratios. The key is the revenue growth which represents the market share and market penetration and insure the future earning growth.
I wish IOMG could sell more drives than disks. Remember, the above is only for zip only.
Comments.
KM
PS. to Young. Don't need defend yourself from some personal attack like Ida Walker. Just neglect him (or her). We know you and your heart and more importantly, we learn a lot from you. We appreciate your hard working and to bring new thoughts. |
