** Response from the network **
The earnings are out, the earnings are out, and thank god the CEO and his wife are feeling better!!
The drums, the music and the Xecom theme song:
techstocks.com
SEE-BS is proud to bring you the latest earnings report:
biz.yahoo.com
SERIOUSLY: Credit is due when it is fair. The earnings report is not bad or horrible but not promising either. Here are a few observations:
For one thing the report is a bit misleading and confusing as it does not give the exact numbers for revenue during the second quarter only. The financial table seems to give the numbers for the 6 months (both first and second quarters combined and not just the second quarter alone). But regardless of that after looking at the earnings report it does not seem that bad but it does not seem promising either! Here is my take: the revenue grew only about 4% compare to second quarter of 1996 (from $2,831,716 second quarter 1996 to 2,943,130 second quarter 1997). 4% is hardly a characteristic of a gorwing company. Gross profit went from $489,619 to $798,873 or about 8% increase. On the other hand there seems to have been a dilution in the outstanding shares. The total number of outstanding shares has increased by about 28% from 8,253,518 in 1996 to 10,621,377 presently. This is hardly considered to be a growth company (especially in this bull market).
So lets assume there were no depreciation or loss and if we take the gross profit and assume that to be the net profit and then divide that by the number of outstanding shares, both in second quarter of 1996 and second quarter of 1997 you end up getting basically 0 (i.e. no percentage increase in earnings per share)!!! This is NOT good! On the other hand the gross profit margin grew by about 27%. Now this can be a one time increase or really the company has gotten a handle on its expenses. It is highly speculative and questionable!
As an objective observer and someone who is really fair when it is due, overall the earnings is not bad, but not promising or great either. At best this is proving that the company is not going out of business and is simply surviving. This is great news since we can definitely continue enjoying SEE-BS Xecom sit-com for sometime! |
