They have had lumpy margins in the past, and when it is dipping their explanation seems to be ramp-up costs- specifically direct labor and production. Here from Q2 2015:
You can see that Q1 and Q2 in 2017 had the lowest positive GM, and that is directly preceeding the huge increase in both the top and bottom line. From Q1 when GLGI was sitting in the low .20s:
So a decrease in margins could very well be a good thing even now in the last few quarters. We do know that that production is still ramping even now. From the recent 8k:
While these machines were not in production for Q1 '18, I would bet there are costs associated to this further ramp-up rolled into COGS. We do know that they hired 14 people this quarter:
In light of this, I don't see the QoQ GM decrease as necessarily a negative development.
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