Value Microcaps Motherboard

[abh3vt]

Shmolton, re SWTX. You said:

"Looks like they're projecting higher profits than last year, but no better than lst quarter's at the max."

I assume you are referring to the slide presentation that showed profit margins as a percent of revenue? You do realize that Q3's profit margin of 13% included a tax benefit of 298k? Without it, pretax income for the Q would have been 1.8MM (or 11.5% of revenue).

Also, because everything in the "Target Business Model" slide is described as being in % of revenues, it is difficult to tell exactly what the final eps numbers will be. Suffice to say that Q4 of this year and Q1-2 of next year will have pretty easy comps on the net eps line.

I had expected revenue increases in the 11% range for FY05 based upon the last Q3 CC, so I was slightly disappointed by the single digit revenue growth prediction for FY05 but not hugely upset. Did you expect a significantly higher number??