RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:2nd quarter earningsI'm guessing this is just a difference in how the R&D costs are presented in the financial statements. Last year PHO paid $1mil for the quarter in royalty payments to Photon R&D (which is extremely close to the increase in normalized operating costs). This was allocated to cost of goods sold. This year, instead of paying royalty fees to the related company (which was incurring the R&D/other expenses), PHO incurs these expenses itself. These are now allocated to operating expenses rather than cost of sales (as it is no longer under a royalty agreement to the related company). This is also at least in part what lead to higher gross margin % compared to the same quarter last year.
Moogul wrote: Is nobody worried about the doubling in operating costs compared to last year (AFTER removing all 1 time items)? I struggle to see this stock raising earning materially. FCF should still be there but I'm little skeptical. I believe we may continue to consolidate for awhile. Just my 2cents.