Losses of $3Million include write downs of $2.1Million, so operating losses actually only $900,000.
Here's a breakdown for the last few quarters. (Numbers have been rounded to save a little work).
Revenues
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Q1-98: 1.6M Q1-99: 6.2M
Q2-98: 1.1M Q2-99: 7.1M
Q3-98: 1.25M Q3-99: 9.0M
Q4-98: 1.5M
Net Income (excluding writedowns(*) )
-----------
Q1-98: (700K) Q1-99: 107K
Q2-98: (2.85M) Q2-99: (414K)
Q3-98: (195K) *Q3-99: (900K)
*Q4-98: (1.0M)
Bottom line: The growth is huge! Year-to-date revenues are 22M+ compared to 4M+ year ago. Without looking at detailed financial statements it's hard to account for net income and why they seem to be so erratic. To me, though, 600% growth year-over-year is going to be expensive (growing infrastructures, personnel, management changes, marketing, R&D, etc.), but at some point, assuming competent management is in control, these "start-up costs" will be absorbed, economies of scale will be realized, and the red ink should stop flowing. Same assumptions are driving AMZN, YHOO, EBAY, BII, UTO, etc., etc., IMHO.
Stock prices often reflect potential, not reality, and with the growth rate of MCF, the Microsoft alliance, and existing and rumored high-profile clients, there is definite potential here.
Just my two-cents worth. (After write-downs, of course.)
Cheers,
JP |
