Jalali has a revised Q1 Forcast.
Jalali has none more research. DDIM will a report a $0.05/share LOSS for Q1, if management follows the deferral policy it reported to the SEC and its investors.
DDIM's 10Q for June 30, 1996:
"During the next twelve months, the Company plains to invest up to approximately $1,500.00 in personnel, equipment .Year 2000 methodology. These expenses will be deferred and amortized over a 4 to 5 year period."
DDIM's 1996 Annual Report:
"During the last six months of 1996, the Company invested $1,255,000 in
capitalized product development cost, consisting of personnel and other related
expenses, and $182,000 in computer equipment to develop an advanced Year 2000
product based upon its current proprietary Year 2000 process. The product, named
Ardes 2k, will be sold directly to clients and to third-party providers,
including computer and software companies, systems integrators and consultants.
The Company expects commercial release of the product during the first quarter
of 1997.
Other than the costs to complete the initial release of Ardes 2k during
the first quarter of 1997, the Company has no significant commitments for
capital expenditures."
Reliance on DDIM SEC Reports would indicate that DDIM will defer only another $63,000 to complete the Product Development of Ardes 2k.
In each of the last 4 Qtr's DDIM had Revenue of $45,000 per Technical Consultant,
and cost of $25,000 per consultant. Stating Q1, 1997 DDIM has 135 Technical Consultants.
Do the math and you get $6 Million Revenue and $3.4 Million Direct Cost.
Last Qtr's General, Admin., & Sales Expense was $2.4 Million.
Additional promotion /selling Ardes 2K in Q1add $0.3 Million.
Additional expenses that were deferred in Q3&Q4 $0.6 Million
This gives a Net Loss from Operations of ($700,000)
Interest earned on proceeds of IPO should be $ 150,000
Gives Net Loss before taxes of ($ 650,000) ($0.05)/Share
Subtract increases Accounts Receivable ( $2,000,000)
Gives a Negative Net Cash Follow of ($2,650,000) ($0.24)/Share
IPO in March of 1996 raised $16.4 Million
By the end of Q1 1997 DDIM will have spent $8.7 Million or 53%
The Balance of $7.7 Million may only last another six to nine months. |
