Clarification of 12/19 press release:
Total new ORDERS in company's 1st half are forecast to exceed $28 million.
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FROM: Scott Liolios (TPRO Investment Relations) Jan 3, '98
The $28 million represents new orders RECEIVED between July 1, 1997 and Dec 31, 1997 (Q1 & Q2). Some of these orders have been realized in the same period. Most ... will be REALIZED in Q3 & Q4 of fiscal 1998. I know many will email me the question "What do we mean by "realized". So allow me to elaborate and I apologize if you already know this .......
The company is primarily in the "services" business, and more specifically the "project business". Therefore, it is not always simple to determine when to recognize revenue.
In Topro's case, revenue recognition is based on a percentage of project completed. So, some of the $28 million may have been completed in Q1 or Q2, but in speaking with Jenkins before I left, he stated most will be realized in Q3 & Q4. [Q3 ends March '98 - Q4 ends June '98]
Allow me to generate a "HYPOTHETICAL" scenario for illustration. Please remember this is a hypothetical situation and not a projection, estimate, or forward looking statement of Topro actual financial data.
Lets assume Topro had a $10 million backlog at June 30, 1997 (NOT actual backlog - illustration only) ... AND ... The company received $28 million in new orders from 7/1 - 12/31/97. The company would have $38 million in business.
In the Q1 the company reported $11.3 in revenue, and lets assume the company reports $11.9 in Q2 (from red chip) for a total of $23.2 for the first half of fiscal 1998.
$38 million - $23.2 million would equal $14.8 million backlog going into Jan 1, 1998.
But the most important point of the the "$28 million" is that one may be able to reasonably assume, without any additional growth, the company is already at a $56 million annualized run rate. That would be greater than 50% increase from the year ended 6/30/97 of $37 million.
I personally believe that now we are in 1998, and corporate america is budgeting for Y2K, Topro will see many more multi-factory engagements. I believe 1998 is the year that Y2k stocks, and most importantly Topro, start to realize their true value. I also believe Topro has only touched the ear of the elephant and in 1998 will be the year the whole animal is exposed. |
