A couple of Points to Ponder:
Many of you have probably already done your DD, but for any newbies I figured I would share a couple of observations:
1) Revenue for 2012 Q3 was light and from the 14 Nov 12 PR we get “VirTra’s revenue recognition methods require orders to be fully delivered prior to revenue being recognized and during the third quarter there were a number of product orders that were pre-delivery.” A study of the USASpending metrics for FY13 shows $1M+ in Federal Government spending in Sep 12 and IMO, most if not all of that was not delivered by 01 Oct 12, leaving a backlog of a $1M+ to be realized in 2012 Q4.
2) From the 08 Jan 13 PR we have “the company has generated a record amount of sales orders for the month of December and for the fourth quarter of 2012. During December 2012 VirTra received purchase orders totaling approximately $1.21 million”. A review of the 2011 and 2010 Q4 reports reveal revenue of $2.039M in 2011 and $2.020M in 2010. IMO, the revenue for 2012 Q4 exceeded $2.039M.
3) Summary: Virtra is definitely not hyping their performance, but it is apparent the revenue is improving nicely. A close observation of USASpending will also reveal that FY13 early data suggests Virtra is on track to exceed their Federal sales from FY12. Now we anxiously wait to see if the increased revenue starts to make it to the bottom line. GLTA!
4) PS: Regarding all the recent reverse split and uplist talk; IMO, I continue to believe Virtra will uplist to the OTCM QX initially. They meet all the uplist requirements today, except for having a share bid price at or above .10 for 90 days. I believe the Virtra strategy will get the stock to .10+ shortly after the 2012 audit is complete. After an uplist to the OTCM QX and sustained improvement with revenues and eps, they could easily uplist to the OTCM QX Premier with a reverse split lower than 10 for 1. The OTCM QX Premier requires a bid price of $1+ for 90 days. I think a reverse split on the order of 5 or 6 to 1 could get VTSI listed on the OTCM Premier exchange. Disclosure: I plan to stick around for a while and will continue to add on weakness. I anticipate 2012 eps will exceed $500K, making the recent purchases below .05 a low risk investment in view of the improving sales figures.
