1. The table below is a hypothetical ... based on the following assumptions:
a. Product growth is 25% over Sep97
b. Service growth is 15% over Sep97
c. Gross product margin at 50%
d. Service margin at 15%
e. Because Sep97 R&D was $350,000 more than Mar97 R&D
(cosiderably more than the usual), an absolute $ increase of $13,000 only was used.
f. A ballpark figure of +$200,000 was used for SG&A increases
(this part of the estimate is the real variable with IDX --
considerable up and down increases over the quarters).
g. No litigation reserves allowed for -- ?
h. No income taxes allowed for
2. Any suggestions for improving the scenario?
Gross product margin: 50.00% 53.60%
Service margin: 15.00% 13.90%
SG&A % of expenses: 21.20% 22.80%
Net margin: 9.00% 2.90%
Product growth: 25.00% 9.30%
Service growth: 15.00% 19.30%
Dec97 (est) 30Sep97
Revenues:
Net product revenues 11,133,750 8,907,000
Service revenues 11,434,450 9,943,000
Total revenues $22,568,200 $18,850,000
Costs and expenses:
Cost of product revenues 5,566,875 4,136,000
Cost of service revenues 9,719,283 8,564,000
R&D, engineering 1,050,000 1,037,000
Selling, gen & admin 4,400,000 4,187,000
Writeoff of acquired R&D --- ---
Litigation reserves & exp 0 423,000
Total costs and expenses $20,736,158 $18,347,000
Income from operations 1,832,043 503,000
Other income, net 30,000 23,000
Income before taxes 1,862,043 526,000
Income taxes --- ---
Net income $1,862,043 $526,000
Wtd avg common shares 25,626,000 25,625,000
Net income per common share 0.073 0.021
Last four qtrs net income: 0.135 0.064
revenue growth: 19.70% 14.40%
last 4 qtrs gross revenue: $70,155,200 $59,164,000
Dec97 (est) 30Sep97
(A formating mess - next time better?) |
