Some income projections - income for Q1 2014 is expected to be declared as $3.6M. So I have seen some people say to expect full year income of $14.4M, purely by multiplying 3.6 by 4. I do not believe this will be the case.
Firstly, 2.6 of the 3.6 was actually earned in 2013 but is only being recognized now after the corporate restructuring. So the underling income for Q1 was only between $1M and $1.5M.
Secondly, the acceleration in panel sales is quite significant.
Between March 2013 and December 2013, there was an average of 80 panels per day. The average in Q1 2014 was 164. The average since 1st March 2013 is 190 and the average since the start of April is just under 300. If the 300 per day is maintained until 30/6/14 that would give around $3.7M which would be pretty flat as reported against the 3.6, but in fact would be 150-200% growth against the underlying figure.
However if the growth continues then the 300 per day is more likely to be 5 or 6 hundred per day by the end of Q2 and the income significantly higher.
If the company's internal targets are met, which is by no means guaranteed, then the income for the whole year should be in excess of $60 million dollars.
That would seem unbelievable, but then the growth in sales thus far has been pretty unbelievable. I spoke to my sponsor this morning and he has got somebody buying 20 panels tomorrow so maybe it is possible. We shall find out at the end of the year.
