Good point: DSO has increased nearly 30%. And A/R increased at twice the rate of revenue increases.
Coupled with $699,000 in "other receivables" (what in the world could these be?), burning cash at $6,000,000 to $8,000,000 annually, and questionable quality of new A/R, it looks bleak for DDIM.
Big orders (right now, any orders) better start coming real soon. DDIM could start running out of cash at about the time they build up a larger organization to generate and support those "expected" y2k sales.
Net profit for 1996 is 6.4%. Ramping up personnel and operations could put a further squeeze on this number.
At wsrn.com, current year EPS estimate is $1.35.
www1.wsrn.com
At Zach's, it's $1.08.
ultra.zacks.com
At the latest profit margin, that translates into $190mm of revenues to hit the annual earnings estimate of $1.08. Last year, total company revenues = $14.8mm. Quite a hill to climb.
At 2:20pm EST, DDIM @ ~$24.50. Couldn't quite push through previous $26 high earlier in the week. Perhaps the downslide has commenced. |
