Liquidmetal Technologies Inc (LQMT)

[The Paraclete]

GET READY FOR A BLOWOUT QUARTER

Let's face it, no one trusts this company any longer. Even most of the Longs are hesitant to predict 3rd quarter earnings above $500,000. And in spite of a mind blowing announcement about their first ever monthly recurring volume order, even the Longs are talking about not getting hopes up too high. The hesitant reactions are due to years of disappointing revenue numbers. But the real facts point to a Blowout Quarter. The 3rd quarter revenues will be well above $500,000, and I wouldn't be at all surprised to see revenues come in above $1,000,000.

Look at the quarterly revenues from 2016 to the present. Those revenues were generated without monthly recurring shipments of "volume deliveries."

Over the past 18 quarters, LQMT has generated quarterly revenues in the $500k range only twice, and those two quarters represented artificially high sales volumes due to transition orders... but they do reflect a minimum of what this company can due on a quarterly basis. Never before has this company had monthly sales, and hence monthly revenues, based on recurring shipments of "volume deliveries." So here are the facts: without volume recurring orders, the average quarterly revenues amounted to $156,000. With recurring volume orders and monthly deliveries, quarterly revenues will blow past $500,000.


* $421,000 in revenue primarily as a result of the completion of transition orders with existing customers.
** $587,000 in revenue primarily as a result of the completion of transition orders with existing customers.
Transition orders represent artificially high quarterly revenues. During this period, LQMT was closing down manufacturing at LF, and they were not yet having Yihao doing their manufacturing, so existing customers stocked up on parts in advance of the closing of the LF manufacturing plant. (And there were only 4 IM machines at LF. Just think how many parts can be made at Yihao.)