Andras, thanks for your analysis. There certainly an improvement over the disasterous Q4. Revenue growth is not outstanding. I am a little surprised. However, the rapid growth in MG&A appears to have stopped. I have done a little analysis which may be of interest. According to my calculations, we can look at the following for trends.
Quarter__Revenue____Cost of Sales___Cost of Sales/Revenue(%)
98(Q1)__2,290,420______909,811_____________39.72%
98(Q2)__3,548,823____1,515,215_____________42.70%
98(Q30__5,023,246____1,947,117_____________38.76%
98(Q4)__5,441,639____2,021,672_____________37.15%
99(Q1)__6,507,812____2,218,394_____________34.09%
There is clearly a trend of decreasing cost of sales as a percentage of revenue. It may well be that the economy of scale is now working in our favor. This is gratifying.
I'll examine the Marketing and General Administration expenses later.
Regards, Ed
PS. The market appears to like the results. |
