Hi BW and all.
I don't see tons of new information here but I like that the gross profit and gross margins exceeded their preliminary announcement considerably. Gross margin at 4.93% is substantially above last years average of 1.92%. It looks like some quarterly rebalancing took shape as I suspected it might.
But 4.93% gross margin is not enough to be profitable. Still its a move in the right direction. It also helps that General and Admin expenses were held to slightly lower than last quarter.
Some units are weaker on revenue. I wonder if they might move sales among units or perhaps even drop unprofitable sales areas in favor of higher margin areas. I haven't seen that stated though. Also, we do know that they advise that the first part of the year is their weakest revenue period.
Even so, sales are strong at about $24.6 million and they appear to be on track to meet their yearly forecast with improved future quarters. I'm glad the Etelix margin bounced back impressively this quarter. Also the unit that they call IoT labs continued to grow revenue this quarter, but maybe more importantly, IoT labs margin improved to its best showing since Q3 of 2021. It needs to improve a lot more, but improvement there takes on special importance as IoT labs represented about 62% of all company revenue in Q1.
Cash held up as someone mentioned in another post, and they added a bit to it. Any quarter we can achieve that, prior to profitability, allows more flexibility for the company in their need or lack thereof of future funding pursuits. (Possibly less of a need for further dilution for operating expenses).
By now we are well into Q2. I hope they can build on the positive trends they have and work out the bottlenecks toward sustained profitability. As always, it would be great if they came out with some concrete news developments on any new division that could bring higher margins. IMO, not exciting new ideas so much as some as the ones they have been working on and hopefully as coming to fruition.
Like I say there is not a lot new this time, but I think its good to see margins back at levels that put us in target for profitability, if they can improve on this.
