RE: RE: RE: RE: RE: RE: RE: Earnings outGreat question Yetta. Here's how they did it:
1) Gross Margin of 81% vs. 74%. Still, margins are where mgmt has targeted.
2) expenses of $9.67M in '07 vs. $14.7M in Q2 2010
With respect to the expenses, there has been an additional $1.1M in Sales/Marketing, $2.5M in R&D,
.4M in G&A,
.4 in Stock Based Compensation for a total of about $4.4M.
In other words, SVC is growing its business and prudently spending its money on R&D, sales/marketing and compensating its people adequately to achieve a good chunk of market share.
3) shares outstanding have increased from 123M to 136M diluting EPS somewhat, the increase probably tied to granted options.
What I see is SVC competing, growing and trying hard to increase market share and revenues and working hard to increase revenues in the future. Imo, they're positioning themselves for future success. Who knows if that will happen but it seems they're doing the right things.