"Production Reaches 100,000 Within First Two Months" That's DTM. That's quite of a lot of memory in two months. That's 600,000 a year already. If DPAC gets 1 buck from each chip, that's 600,000 added to the bototm line. If they get 2 bux, that 1.2 mil added to the bottom line, instantly. I'd say they are getting at least 2 bux.
Then we have Seagate putting DPAC in their Enterprise disk drive. I don't know who uses Seagate in their products, and who uses Enterprise, but I'd say they could easily sell 100,000 Enterprise hard drives in a year's time. That'd be 100,000 at a dollar a chip. I don't know the going rate for hard drive cache modules, so I can't necessarily guess at how much they'd be paying DPAC.
Then their is the 60% staff expansion. I'll put it at 40% actually increase in sales due to this (low number) so we're at 9.8 mil in revenue from this (I used 7 mil times the 40%, as some of the total sales are royalties). Then I'll assume a profit margin of 7% (down from last qtrs due to more staff) That's 686,000 per qtr from manufacturing.
Then we can correct ourselves here:
"The stacked chip technology used to create Hyundai's new 256MB DIMMs makes it possible to reliably stack two
components on top of each other. Without the use of stacking, a DIMM can only hold 18 components, which limits its density. However stacking doubles the chip layer, making it possible to fit 36 components on a single DIMM. The result is double the amount of memory capacity in the same physical space. "
So I can conclude that DPAC will make, at a minimum 1.1 mil per qtr of the next two years. Plus RAM prices are rising, so earnings will do better. So we have 5.6 cents a share per qtr. We'll use 6 times 4 and get 24. Times a reasonable pe for a fast growing company of 40 and we have a 9.60 a share company, looking a year down the road.
I would like to conclude by saying that if DPAC hits five, I am in. |
