What Bob left out of the PR........
Such a solid and building 10Q, am totalling impressed by Virtra.
The VTSI PR for the 2nd Quarter just pounds away at the stats, and for myself it's all they pretty much need to say.....
With two exceptions: Guidance & Threat Dynamics Investment
GUIDANCE
How many of us have silently or openly voiced the opinion on this board of a lack of guidance on future business for Virtra?
As investors, probably to the man. But the reality is, in a low unit sales model, where one less/more sale can make or break a quarter it's pretty hard to be accurate.
Further, orders based on local/state/national gov't purchases add time and complexity to the equation of "future sales".
But as business starts to "thicken", rise in bookings and move beyond an unsteady flow of orders (through heavier marketing, discounting, etc.), investors can begin to see more of the business.
Case-in-Point is this from the latest 10Q:
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"During 2nd Quarter 2009, we had three large projects nearly completed in the production stage. Our percentage of completion
is based on total costs incurred to date compared to the estimated total cost of each contract. Of the partially completed work at
June 30, 2009, we have incurred total costs of $290,925 on contracts totaling $1,237,243 of total revenue..."
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Put in perspective, the best quarter VTSI has had grossed 1.22 million and the above amount does not reflect sales actually made during the 3rd quarter.... So we are looking at a record 3rd qrt. 2009.
Additionally, "funds" coming into Virtra for this upcoming period should include Threat Dynamics monies, yes? Which brings us to the 2nd exception:
THREAT DYNAMICS INVESTMENT
$86,663 for OTHER INCOME line in 2nd quarter 2009 10Q.
That's 10% of our systems sales in the same period. Significant.
How much of that amount is TD? Looks like all or almost all (financing charges Virtra was collecting appear over).
So if Virtra is collecting, this kind of coin (off the top) from Threat D., imagine for a second how well that operation must be going.....
If Virtra was collecting say....10% of revenues (which is substantial BTW), then TD did well over 3/4 of a million in sales for quarter 2. This from a company that began in March. Obviously, somebody did their marketing research. [wonder how soon before TD 2 shows up!]
No wonder they have been working 6 day work weeks, and already have bookings in SEPTEMBER....
Anyway, just two cents worth, and a big thanks to BoB and crew for a great, great quarter.
imawswami
