More bad news, Truthseeker:
Today's financials (See Exhibit 5) are very interesting. Here is a company with revenues of 1.5 million for the Q, but inventories of 3.2 million.
Inventory Analysis
This company has more than one year's of sales in inventory. As of July 1999, the company's inventory was $3.19 million. Since the cost of goods sold was $2.03 million for the year, the company had 574 days of inventory on hand (another way to look at this is to say that the company turned over its inventory 0.6 times per year). In terms of inventory turnover, this is a significant improvement over July 1998, when the company's inventory was $3.21 million, equivalent to 2,476 days in inventory.
At the end of July 1999, the order backlog at Conolog totalled $1.60 million, versus $1.40 million in July 1998. This represents an increase of 14.3%.
Source: profiles.wisi.com
Notice that while inventories were indeed high, there was a significant improvement over the previous period. Company appears to be "turning it around" - Excellent!
mike |
