Eurocontrol Technics Ord EUCTF

Strong growth in gross margins

[newdaydawning]

The path to profitabilty requires strong gross margins. During Q2, gross profit came in at 63%, more than double the 30% during the prior year period. If EUO can sustain that level of profitability, while continuing to grow the top line, investors will be rewarded with generous returns. Buying at these levels is a no brainer.

[kidl2]

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

[newdaydawning]

Dwelling on past performance is largely irrelevant at this point. What remains relevant is the top-line and gross-profit growth that EUO turned in during Q2. In my view, Q2 could foreshadow a strong half.

[Chutzpah]

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....

[lscfa]

When the Xwinsys products were priced at $1 million the gross margin was probably 50% but with these products now priced at $2 million I assume the gross margin is 75%......