Analysis of results. Zacks and First Call estimated mean loss of $.01 per share vs. actual EPS of $.01 for the 3rd quarter. On the negative side revenue was down 9% for the Sept 97 quarter vs. the prior year. However, on the positive, revenue for the quarter Sept 97 increased 4% from the June quarter, and, Jit Saxena, CEO, states that during the third quarter the company continued to execute their plan and saw significant improvements in targeted markets.
The Operating loss before interest income and taxes was reduced from $1,068,000 in the June quarter to breakeven in the September quarter. How was this accomplished? From the sales increase from the 2nd quater to the 3rd quarter of $495,000 (mostly service revenue), a decrease in cost of service revenue of $49,000, a decrease in Selling & marketing expense of $250,000, a decrease in R & D of $182,000, and a $105,000 decrease in G & A expense.
Althought I am not happy that sales are down for the June 1997 quarter to the June 1996 quarter, the trend is definitely favorable for the June 1997 to Sept. 1997 quarter, with growing revenues and decreasing costs. |
