I'm just saying, from my vantage, it doesn't make sense to think the company is just going to stagnate and wither.
Well, unfortunately, that's what it has done for the past year.
Here's gross margins and operating margins for OVTI for the past 4 quarters, each with $130-$138 million in revenues:
Jan '06 - 40%, 26%
Apr '06 - 37%, 20%
Jul '06 - 37%, 20%
Oct '06 - 34%, 15%
And both numbers are expected to decline for the Jan '07 quarter.
EPS looks even worse. Over the trailing 4 quarters OVTI made $1.59. The forward forecast for the next 4 quarters is $0.79....
Like it or not, OVTI has been withering for over a year now. As for the future, it's just that, the future.
Don't expect the stock to go up sustainably until gross margins go back up. |
