Tim,
Thanks for the Conference call coverage. It was great.
One thing about the report today bothered me.
Revenue:
License fees $ 17,767 $ 12,761
Services 2,809 2,046
Total revenue 20,576 14,807
Cost of revenue:
License fees 959 1,440
Services 2,130 1,605
Total cost of revenue 3,089 3,045
Gross margin 17,487 11,762
Operating expenses:
Research and development 6,275 3,325
Sales and marketing 4,538 3,443
General and administrative 3,261 2,491
Total operating expenses 14,074 9,259
Bob Riopel has stated that the business model calls for R & D to be
25% of Revenue. If we look at the earnings in that light:
Revenue was $20,576 * .25 = $5,144
$6,275 - $5,144 = $1,131 is the amount that R & D is too high.
Tax rate was 32%
$1,131 * .32 = $361,920.00
$1,131,000 - $361,920 = $769,080 or a .04 per share increase.
In other words, if the R & D was in line we would have had .22
per share today instead of .18.
Did they say anything about the R & D line today?
Thanks,
Marc |
