The 4th quarter has always been lower (then the 3rd) since I've followed them [last year with the sales ramp it was flat but that is basically down per rep given the sales force addition]. With the steady growth though we'll obviously do better this year but here is some data over the past few years:
Net sales and rental income 2007 2006 2005 2004
Q1 $1,336,731.00 $505,091.00 $544,943.00 $262,941.00
Q2 $1,505,207.00 $560,860.00 $589,483.00 $336,705.00
Q3 $2,104,446.00 $743,787.00 $604,141.00 $366,784.00
Q4 $747,071.00 $359,841.00 $290,246.00
I think there is likely an added lag in the billing cycle too so the Q4 numbers may not quite match up with peoples expectations.
I agree with 10bagger and some may have felt they missed the boat and are looking to criticize the stock. There is no (negative) surprise here. Am I disappointed orders weren't hirer? Yes. Does this mean the growth has stopped or the company is overvalued? Not by any means in my book! I haven't sold and personally am not too upset with our low PE as it makes it easy to hold on to the shares as I can't imagine selling anytime soon! Granted we're a microcap and won't get as high PE of a company growing in triple digits but as someone pointed out our forward PE given our growth rate is unbelievable (low).
I generally like to buy early on and hold for the long term but if the Q4 isn't up to peoples expectations it may present a unique opportunity as history would indicate Q1 tends to pickup and then increase throughout the year [even before the sales force ramp].
As the company grows Sandgaard gets a lot more options open to him/the company. More products, partnering, better name/brand recognition, bigger exchange listing, etc.
