Data Communications Management Corp T.DCM

Q3 is out and it’s not great.

[KnowledgeSeekr8]

https://www.businesswire.com/news/home/20241112828060/en/DATA-Communications-Management-Corp.-Announces-Third-Quarter-2024-Financial-Results
 

Back to $2.50 range again tomorrow

[lscfa]

Mgmt is full of it. So far, SG&A has decreased $3M/qtr or $12M/yr. The remaining $18M - $23M is suppose to come from lower cost of goods but that only works if the revenue level stays the same. Lower revenues wipes out lower cogs and gross profit suffers.   Aug 7/24 - "Through these actions, we remain on track to realize annualized post-acquisition synergies of $30-35 million

[KnowledgeSeekr8]

Agreed unfortunately. I've been in this one for a long time and through some really tough times. Obviously we are in a much better place now, but I've been waiting for that blowout knock the door down quarter and it's just not happening.  Now they went and made another acquisition without even letting its investors know how much they paid for it and what it's actually going

[lscfa]

Assuming revenues can rebound I see $11M in cost of revenue savings will make it to gross profit and bottom (97,204 - 86,445) . I have guesstimated the split between fixed costs and variable costs.     Qtr ending Total Cost of rev Revenue Fixed cost of rev Variable cost of rev

[lscfa]

Gross profit column added...   Gross profit Qtr ending Total Cost of rev Revenue 42,555 Future 86,445 129,000 28,009 Q3 24 80,717 108,726

[lscfa]

Another point of view. If they hit their target 30% gross margin when revenues bounce back then the synergies on costs of revenues will hit $25M.   Add that to the $12M savings on SG&A and mgmt estimate of $30M - $35M is attainable.       Gross margin Gross profit Qtr ending Total Cost of rev

[Ethanbrodie123]

I am starting to get tired of this "oh look how much business we are winning and growing " but in reality, 2 big misses in a row and both times they state that they expect to recoup the lower amounts in future quarters.. If i recall, I believe the Ceo said that we will see an increase spend in the 3rd and 4th quarter because there was a decrease in the beginning half of the year and they