Eurocontrol Technics Ord EUCTF

RE:RE:Strong growth in gross margins

[Chutzpah]

kidl2 wrote:

NDD: The argument of using increasing gross margins as a sign of good things to come is  simply wrong in EUO’s case.

 

EUO always had terrific gross margins, actually much higher than Q2, thanks to GFI and the low product cost of the actual marker and yet EUO managed to continuously lose money thanks to its ridiculously high overhead. This was by design as it benefitted the insiders while shareholders never got anything out of these fat gross margins.

 

It’s not wise to hang your hat on what a company promises or tries to promote without comparing such promises to past performance.

Even with gross margis at 60%, with the current bloated administrative, marketing,general and otherwise cost structure, EUO will need in the order of 7-8 M in revenues before it sees a single penny of profit. Brucey and Doron salaries alone need about 1M in revenues or almost 50% of current yearly revenue....