RE:RE:RE:News out. Looks like a 8 mill order Assuming the June shipment was included in Q3 financials, that probably explains the dip in gross margin. Gross margin was around 54% in Q3 vs 60 in the previous year. Likewise, 9 month gross margins were around 57% so the big sale did lower margins. Not surprising and still excellent margins for a big wholesale transaction. My questions would be whether the distribution partner was already paid out of the gross margin OR if they were compensated in the increased sales and marketing expenses. I think the later, since sales and marketing were up $80K over last year qtr.
Net profits are up less than I would have hoped for this large a sale but I am here because of the 2019 regulation change and the potential impact on PTE.v. I would guess the best outcome for PTE.v and us would be a series of licensing deals with large manufacturers. Why? Because we would turn into more like a royalty play. Any licensing income would drop to the bottom line with very few increased expenses. Net profits should soar.
We'll see how this story develops but I think Pioneering is in the right place at the right time.