Eurocontrol Technics Ord EUCTF

RE:Variances - Q3 vs Q4

[Joseph_K]

I agee on everything except the burn rate.   It looks like 1.3 million in Q4, and if some XwinSys expenses were deferred to Q1 to make the books look better in Q4, or for whatever reason, then I'd expect Q1 to look pretty bad when that is released next month.     Even with the reduced R&D expense, it still looks to me like a 30% increase in the burn rate vs the avg of the previous two quarters.

Still a wait and see story for me as well.    Judging by the level II minutes before the open, it looks like the market agrees with you kidl2.

kidl2 wrote: The 3 items with major variances: Sales, S&M and R&D expenses
 
The $470,000 increase (nearly 200%) increase in Xenemetrix sales came with a nearly equal  increase of $510,000 (600%) in sales & marketing. Beginning of a trend or a “one of”? Q1 may shed some light.
 
The approx $300,000 (50%) decrease in R&D begs the same question / also needs Q1 for confirmation especially since Bruce alluded to continued sizeable R&D spending. It’s probably reasonable to assume that Xenemetrix related R&D will decrease now that the updated product offering is in place. How XwinSys related R&D expenses will evolve remains to be seen in light of seemingly still ongoing product development / refinement.
 
The biggest question mark is Croptimal since I don’t recall ever seeing any estimates in terms of R&D and, maybe more importantly, operating costs.
 
All in all, the “hurry up and wait” scenario continues (in my books) with an essentially unchanged burn rate of around $1 Mil per quarter.