RE:RE:60% gross margin is the targetQ3 was a great quarter for them wrt operating expenses, maybe that can be repeated over the next 4 quarters, maybe not.
Why not just look at the quarterly financials and add up the net income and R&D for each quarter and it comes up to about $5M for first 9 months. I don't think net income and R&D will be $4.1M in Q4, but still better than Q3, maybe $2.5M for Q3 for a total of $7.5M in 2021.
prophetoffacts wrote: Not this simple but just to provoke...
Q3 profit $875,000 X 4 = $3.5 million annually.
Q3 R&D spend $1.4 million X 4 = $5.6 million annually. Q3 Annualized Profit + Q3 Annualized R&D spend =
$9.1 million.
Market cap = $30 net of cash.
Yield 30.1% on net of cash basis.
prophetoffacts wrote: This is BIG. Let it sink in!
Indications are for "solid" double digit growth for the base business for 2021. Assuming by "solid" it is meant about 11% growth over 2020 that would mean approximately $16.63 million in revenue for 2021.
The stunningly improved 60% gross margin in the last two quarters in the new consolidated facility is not an anomaly. It is believed sustainable and represents the long-term target for the company.
Everyone should run a 60% gross margin through a full year with another year of 10% growth and see what you get for 2022! Essentially you get average revenue per quarter about equal to Q3 2021. Look at the $875,000 net profit in that quarter and add back the $1.4 million R&D spend! What is the forward yield given the $30 market cap net of cash currently?