OTCQX:MRVFF - Post by User
Comment by
TheRock07on May 12, 2016 8:28am
179 Views
Post# 24865175
RE:RE:Q1 Results
RE:RE:Q1 ResultsCOGS ( Cost of good sold ) is declining rapidly.
COGS for the three months ended March 31, 2016, was $3.1-million, compared with $2.4-million for the three months ended March 31, 2015.
Product sales doubled from $3.7 million in Q1/15 to $7.3 million in Q1/16.
That is, a near doubling of sales was generated by only a 29 % increase in COGS.
This reflects economies of scale ( cost inverse to volume ) to which I alluded to in late 2015.
As a consequence, we are seeing gross margins increasing to 57 % in Q1/16 compared with 35 % in Q1/15
With product sales estimated to be about 35-40 % higher in Q2, we should see unit costs continueing to decline and gross margins edging higher..