Valuespec,
Welcome back. I thought you might be interested in some items of note from FCM's Quarterly filing.
Franklin started this Q. with an extremely small inventory of raw materials. Yet they produced $ 4,000,000. in sales. I guess they received all the materials for this great Q. after their last Q ended on Dec 31, 1998. It would seem that the components for their hardware are readily available, as they seemingly were received and inventoried after this quarter began ?
DECEMBER 31, JUNE 30, ------------ --------
1998 1998
---- ----
(UNAUDITED)
Raw materials... $171,000 $260,000
Work in process. 179,000 164,000
Finished goods.. 302,000 247,000
-------- --------
Total....... $652,000 $671,000
======== ========
Now look at the new Q's inventories below.
MARCH 31, JUNE 30,
1999 1998
---------- --------
(UNAUDITED)
Raw materials ........................................ $1,746,000 $260,000
Work in process ...................................... 279,000 164,000
Finished goods ....................................... 225,000 247,000
---------- --------
Total ........................................... $2,250,000 $671,000
========== ========
They pumped a good deal of this Q's sales back into inventory ! That's ten times the inventory from Dec.'s Quarter. By the way, did you notice the new legal proceedings regarding an ex employee in this Q's filing ? I wonder what that is about ?
Best regards,
Tom |
