SDGL...currently trading @ .14
Very nice Q. $700,000 income on $14.5M in revenue.
biz.yahoo.com
COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2008 TO THE THREE MONTHS ENDED
MARCH 31, 2007
Revenue
Total revenue increased by $4,138,559 or 40%, to $14,509,361 for the three months ended March 31, 2008, as compared to $10,370,802 for the three months ended March 31, 2007.
The increase in total revenue was mainly due to an increase in fees earned from the production of multimedia programs and business contracts. The increase in revenue from the production of multimedia programs was a result of increased sub-contract work from the clients of the Company's two major customers. Revenue for project consulting services was generated from four project consulting contracts that the Company secured in 2001, 2002 and 2003. In the three months ended March 31, 2008, two customers, accounted for 50% and 44% of total revenue. In the three months ended March 31, 2007, the same two customers accounted for 48% and 49% of total revenue.
Gross Profit
Gross profit increased to $1,242,457 for the three months ended March 31, 2008, compared to $690,627 for the three months ended March 31, 2007, an increase of $551,830 or 80%. Gross profit margin increased to 8.6% in the quarter ended March 31, 2008 versus 6.7% the quarter ended March 31, 2007.
The increase in gross profit in 2008 was due to higher revenue, particularly consulting revenue, which has a much higher margin than production work. As a result of higher revenue, cost of revenues increased by $3,586,729 or 37%, to $13,266,904 in 2008 from $9,680,175 in 2007. The increase in cost of revenue was primarily due to the Company requiring additional external resources in order to fulfill the higher demand for the Company's services. The outsourcing of content production work enabled the Company to develop a team of contractors that will assist the Company in producing multimedia content and applications that are crucial to its future business operation.
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Increasing revenue, increasing earnings, increasing profit margins and a shrinking float. What is not to like here? |
