Seven reasons for imminent SMTX robust Quarter results:
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 companies.
2)The deal signed a year ago with Leitch, is ramping up volume (6 million + per quarter as of January 2006). In February, SMTX said the large Telecom production contract with BVC:LSE was ramping to full production during Q1 2006. The other 2 new major new customers procured in late 2005 are ramping up as well. Other smaller contracts signed a year ago may be picking up as well. 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)In the May Q1 Conference Call, the CEO noted a pronounced upturn in SMTX and Industry cycle. The CEO noted the Significant purchase of inventory at the end of the quarter.
6) The following comment was made by the SMTX sales VP in Q4 2005 Conference: "We also broadened our sales team’s geographic coverage, increased the number of sales leads by over 10 fold, and left the year with the healthiest sales funnel the company has seen in a number of years"
7) Go back back and look at last year sales. there was 12% improvement from Q1 to Q2.
In conclusion I would look AT LEAST 4 - 7 million over last quarter. So about 62-65 sales this quarter and $.10 per share.
