I haven't got time at the moment to post the detail, but as a beancounter I went back to Amblers statement about revenue, profitability, etc in FY2000.
If you plug in .85cents a share as EPS and $40M for revenue and use the 4th Q 98 run rate for the operating expenses, you need a gross profit of circa 33,920,000, giving a cost of revenues of approx. 6,080,000.
Does anyone have any idea of the cost of revenues for the Java software revenue?
If my rough extrapolation is even remotely accurate the interesting thing is that any additional high margin software will drop almost straight through to the bottom line, after deducting commissions, etc. And of course if they can beat the 1999 revenue target, and give an early indication of that happening, this company could be due a serious rerating. JMHO of course.
bert the beancounter. |
