FSI- I see problems
Here's what I don't like. Gross margins ! Gross margins were 46%, 37%, and then 25% for Q1, Q2, and Q3 2018 sequentially. Wow ! So I went to the estimated revenues for Q4 of $5.62M, went back to the Income statement, and plugged in GM of 25%(same as Q3). That would leave $1.4M gross profit. Then there is S,G, & A which was $995K in Q3, which with 47% higher revenues must be increased for Q4, as well as $33K in R&D in Q3.
So the huge question is, what will margins be for Q4 ? If they are the same 25% as in Q3, then even with 47% more in revenues, Net Income is unlikely to be much higher than breakeven. I mean it all depends how much S,G & A will increase in Q4. Either way though, margins substantially trending down for 3 straight qtrs is very concerning, and if that trend continues, will largely cancel out the earnings benefit of even the huge increase in revenues being guided in Q4 vs Q3.
Also, I can't even get a profile on Yahoo Finance in order to go to their website and look at the 10Qs, and 10Ks. I got the Income Statement numbers from the financial tab on Yahoo Finance. Will go to Edgar and look at the 10Q/10K there
