SMTX looks like a nice turnaround play .... but the 10K makes no mention of seasonality, so not sure how much they can improve on the $0.06 earned in Q1 ..... last year Q2 revenues grew 16% over Q1 ..... eps could be substantially higher than $0.06 if they repeat the sequential growth this year ....
However, share count may not reflect all outstanding warrants .... noticed that the fully diluted share count of 14.8M from the most recent 10Q excludes over 4M shares evidently because their Canadian subsidiary is losing money so the effect would have been anti-dilutive ....
For the three months ended April 2, 2006, the calculation did not include 498,371 options, and 16,675,000 warrants, each warrant exercisable for one-fifth of an exchangeable share of SMTC Canada and 11,166,947 warrants, each warrant exercisable for one-tenth of one share of common stock of the Company, as the effect would have been anti-dilutive.
