analyst update
Americhip analyst note update
IPOdesktop.com, August 10, 2007
Regarding the May 31, 2007 quarterly statement
REVENUES & GROSS MARGIN
(1) Revenues were up, with a significant contribution from gross margin
(2) As the CEO said in the last interview, revenues for the August 31 quarter appear to be on an upswing relative to the May 31 quarter, and the gross profit percentage is expected to increase.
OPERATING LOSS
(1) The reported loss was $1.7mm
(2) If consulting (a non-cash charge) and depreciation & amortization charges are backed out, the operating loss for the May quarter was $100,000 per month
(3) An operating loss of $100,000 per month is sustainable in any case
(4) However, operating financials are improving and the path to break even is crystal clear, in our opinion
(5) In addition, major LACC (Laser Assisted Chip Control) orders appear to be on the short term horizon (as the CEO discussed in the last interview), any one of which would throw Americhip's income statement into a clear, ongoing profit position
Note
(1) The LACC business is a strategic partnership where Americhip technology is integrated into the manufacturing process of blue chip companies,
(2) with a high gross margin that continues month after month
(3) The stock market highly values recurring revenue, profits and positive cash flow from recurring revenue, especially when the growth is based on implementation of proprietary technology from a company with a clear competitive advantage.
From another web Site.. IV |
