Hey Ben and George,
I just received investment package from CYH in a most timely manner. Latest consolidated financials for period ended July 31, 1996 are not ready yet, but the packet did contain the unaudited financial statements from August 95 through April 96. I don't mind admitting I'm a newcomer to the investment arena and that I've only started to read How to Read a Financial Statement. But it's quite clear the company is in need of sales. It appears they have a timely product (see compression.com). Has anyone read an industry review?
I don't have a scanner and to type all this stuff in is more than I can (want) to do. Call 1-800-661-9277 and ask for an investors package., you'll get it in a couple days.
Revenue is up significantly (75%) but cost of goods sold is up only modestly (13%). Gross profit is up almost four fold. Unfortunately that doesn't translate into a net profit. There is still a net loss though significantly improved over the same period last year. Important to note that expenses only went up 25% to increase gross profit by 75%.
I'm encouraged by the fact their marketing efforts are up 60%. Another significant figure, their R&D is up 6 fold.
It appears to me they've got the right product at the right time -- a compression/encryption device. Is it relevant to ask: Do they have the ability to capitalize on this before some other player jumps in? (As I recall that was one of the major concerns about Iomega and their Zip Drive. A lot of folks apparently thought they wouldn't be able to meet orders and capture market share before major competition came in. Obviously they were able.)
Here is a summary:
4/96 4/95
Revenue 517,145 295,921
Cost of goods sold 262,398 231,462
Gross profit 254,747 64,466
Expenses 512,511 412,457
(my note: there was a forgivesness of a shareholder loan which resulted in a net loss of (194,940) as compared to (347,902)
There was a deficit at the beginning of the year of (295,991) meaning a deficit at the end of year of (490,931)
This company needs sales. They've got a timely product and apparently, at this time, are the only player on the block. If the Atlanta show generated some interest, and, if the up coming shows in Europe, where they feel there is real market potential, generates some sales...who knows, this might work.
If anybody has a scanner, I'll be happy to fax you the April figures so you can post them.
regards
Richard |
