I wrote the following for the Y! MB, in answer to the apparent discrepancy between the company's recent claim of 600% increase in sales:
WWoJ, a frequent and rather nasty poster: >>4) Except that $2m is mostly revenue from the sale of BSD 500 and 2000s - learn to read a financial statement. The revenue for MTX for the quarter was not even $300,000" <<
alsoRay (Pleo): >Why is "revenue" (Sales) for the quarter relevant to the approx. 600% increase in sales (note lower case "s") that is being bandied around? In keeping with what I have been saying, the company is probably revealing the very rapid increase in sales (what salesmen achieve) -- but the $ revenue (entered in the Sales account) will likely lag salesmen's sales by a substantial amount of time.
Yes , because BSD M. has not been fully clear about what they mean, I am guessing somewhat about the above distinction. But, otherwise I see no way to explain the various statements about rapid increases in selling -- no way except blatant lying, that is. And, it does not make any sense that the company would be publicly lying, as that is legally actionable. In particular, that 600% of something is very unlikely to be a lie. The issue is, what is that something? However, *whatever* is the comparison, it must truthfully represent that level of growth over the period spanned -- or those issuing it are liable; and I doubt they would blatantly risk that.
I believe the real issue is that the company has not been fully clear in their communications. Because those large increases in selling are very important to investors, they should not be held back. And, I applaud them for not holding back. But, without some explanation provided, there will be/is confusion.
The difference between sales and Sales is normally not very much. But, when 1) sales are rapidly growing and 2) payments are substantially to much delayed (as common, I believe, for medical products) -- then there will be a large difference.< |
