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Sunday, May 16, 2004 9:09:00 PM
"The increase of approximately $115,300 of cost of sales is primarily due to the increase of revenues in 2004 compared to 2003. Because of the small sales volume and our dependence on the type of testing conducted in a particular period, these results are not indicative of the margins that we expect to attain if our long-term goals are achieved. Some differences could also arise from our refinement of our estimate and allocation of research and development costs."
We have to wait until sustained volumes over a couple of quarters are such that the true margins are reflected in the bottom line results.
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