RE: When are quarterly results expected?Agreed, it should be a blowout.
Here is an excerpt from the recent Jennings report on SVI:
Earnings Forecast
We forecast earnings at $0.13 per share in fiscal year ending September 2003 and $0.23 per
share in 2004. This compares with $0.07 per share in 2002 and $0.12 per share in 2001, when
a tax refund was accounted for in income. In the first half of 2003, SVI earned $866,000 or
$0.04 per share versus $502,000 in 2002 or $0.04 per share on a lower number of outstanding
shares. Revenues in the half were $19.1 million, an increase of 44% from the previous year’s
first half.
We have based our ’03 estimate on 45% revenue growth, which is higher than the Q2, 03
revenue growth of 42%, due to the impact of the $5.0 million order announced earlier this
month. We expect small contributions from Digimerge this year, but much higher revenues,
in the $5 to $6 million range, in 2004. EMTS wireless is not likely to contribute revenues
until next year except through IntegrAlarm.
The company currently derives 80% to 85% of its revenues from U.S. markets. Thus,
revenues will be negatively impacted by the fall in the dollar. The company’s Cost of Goods
Sold is also priced in U.S. dollars, so there is a natural hedge. Some operating expenses are in
Canadian dollars.
We expect gross margins to rise from the new digital product lines added to the revenue
stream. We have added ½ a percentage point to margins in each of the years to the end of our
forecasts. Operating expenses are likely to rise sharply this year and next, as the company
prepares to handle the new product lines. In the later years of the forecast, these costs, relative
to sales, fall sharply.
Interest expense comes only from the bank debt used to finance working capital. SVI has no
long term debt.
Taxes are high as the company is not eligible for the lower manufacturing tax rate. Moreover,
the company’s capital asset base is small as most assets are in working capital or deferred
development costs, so tax deferrals are low.
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So they are calling for earnings of $.09 per share over the 2nd half of '03. I believe this will easily be acheivable, in which case the stock should continue to power up to the $2.35 target that Jennings has established.
If the company would list in the US then the stock would go up even more. Not sure why they don't do this. About 3/4ths of their sales are in the US.