Capstone Companies Inc (CAPC)

[greasemonkeyshoes]

Revenue,revenue,and revenue........
I believe the company is facing a problem of the worst kind: major revenue decline due to product obsolescence/market saturation,and new replacement are not fully ready.An ugly gap is widening up in 2018.
“During the quarter, three new products were introduced and shipped......"
revenue $4060k(2018) vs $6752K(2017)
Assume 10% contribution from the brand new 3 products(very very conservative guess,25% is more likely)
adjusted revenue becomes $3654k(2018) or 54% of $6752k(2017).The legacy products are not moving,dropped by 45%,very likely been cancelled and dropped in the pipeline,is this the reason why people not seeing them in a particular Costco,or worse??
My estimate for next Q;
revenue $6-$7million
eps=0.5c
or
For 2018:
revenue $19-$22 million
eps<3c

I hope in the call management can give us the confidence that they have reversed the MAJOR drop in sales in the current q,and the cancellation by customers have stopped,plus the new products sales are plugging the big revenue hole fast: A TALL ORDER FOR THE MANAGEMENT TOMORROW.