BSQR- further evaluation
The negatives first. 3rd party revenues will decrease substantially for the Sept qtr vs the June qtr due to the fact that all Microsoft year end incentives were in the June qtr. Now the proprietary revenues are all over the place, as are the margins attached. Therefore one can't accurately speculate on that, only to say it will likely won't be less than $.02- $.03/qtr of total EPS. Now engineering margins are being guided in the mid 20s, while they were just 29% for the June qtr. Now for the positives.
BSQR is attempting to raise margins on their 3rd party software revenues by giving longer receivable times- I don't know how thrilled I am with longer receivable cycles in exchange for higher margins, but it will make BSQR more in earnings. The one sector I really like with BSQR is their engineering sector. Even though margins are likely to stay around 24%-29% range, I think they'll keep increasing their revenues in that sector nicely. For me that would be the main reason for being in BSQR.
Bottom line is though, we really need to see the Sept qtr, and guidence to know the direction for earnings at this point. I mean despite being $.15 for the last two qtrs, I think we'll see more like $.12 for the Sept qtr. I really would like to see what BSQR shows for engineering services revneus, and their overall guidence for the Dec qtr before reentering. If BSQR stock price acts like it did last qtr, we should be going into Sept earnings at $6 or less by Nov 14.
