Actually, FIVE reasons for SMTX blowout Quarter
1)Last quarter was traditionally the weakest for their 3 big customers, EMC/Ingenico/Mars. This quarter should see about 1-3 million extra in revenue from these big guys.
2)Next there is the deal signed a year ago with Leitch, which is ramping up volume (6+ million a quarter as of Jan 2006). In Q1 SMTX said the large Telecom production contract had started up. Other smaller contracts signed a year ago may be picking up, along with the Telecom and other recent deals. This should add 2+ million over last quarter.
3) All of SMTX's competitors are reporting double digit sales gains robust profits due to rebounds in the telecom, networking and computing sectors.
4)CEO quote: As expected, we utilized approximately $6.0 million in cash to finance our growth and higher level of activity at the end of the quarter", stated Jane Todd, Senior Vice President.
5) Go back back and look at last year sales. there was 12% improvement from Q1 to Q2
So I would look AT LEAST 4 - 7 million over last quarter. So about 62-65 sales this quarter and $.10 per share.
