[Back of the envelope calculations]
Pierre,
Your calculations do not necessarily describe the best case scenario:
1) Last quarter gross margin was 51%. With increased production volumes, better yields should be achievable, so GM should go up this quarter.
2) Large portion of SG&A costs is fixed, I would expect SG&A to go down as the percentage of revenues
3)R&D expenses are a big unknown, but at this point in development cycle there are no reasons to expect R&D spending growth to exceed revenue growth. Current R&D spending level (11.6% of revenues) seems to be high compared with the industry leaders (which in itself is good), Banshee development is nearing completion. Granted, the number of employees had grown from 35 to 170 in a year, but I have no idea how this hiring is devided between R&D and SG&A.
Even a modest 10% increase in shipments should generate another 2.5M in revenues that would cover a 40% increase in R&D budget or 15% increase in R&D+SG&A spending.
Everybody seems to think that Voodo continued to sell well through the last 3 months, so chances are good that this Q pre-tax income will exceed the 18% previous quarter level.
Regards,
Y. |
