Hongchang International Company Ltd (HCIL)

[Rawnoc]

Last but far from least -- two words: Deferred Revenue.

06/30/14: 321,151
09/30/14: 996,298

What is deferred revenue, you ask? It's revenue from services paid in advance that the company hasn't delivered (nor expensed yet). Since PWEB charges in advance for a month of service, deferred revenue are services paid for (one month) with less than one month left in the quarter.

Using an average of say 1/2 a month, the rate or revenue on 6/30/14 was 321,151 * 6 to get a full quarter or $1.9 million. Q3 came in at $3.9 million so there was some acceleration from 6/30/14 to 9/30/14.

Now the rate at 9/30/14 = $996,298 X 6 = $5.98 million.

If that rate just stays flat with no acceleration.....Q4 is going to be another sequential improvement monster.

Long story short if you assume 20% gross margins on the extra business.... an even $0.02 EPS for Q4. Annualized rate of $0.08

If so, PWEB is going to absolutely explode.