Replies to post #57139 on Value Microcaps Motherboard

[wadegarret]

Cmon Jaybird

This company is not profitable- at least not from operations. I don't know what the "Other Income" pertains to, but without that they'de be way in the hole after interest expense. As for the $360M in Sales. It may have totalled that over the last year, but I only saw $19M for the Mar qtr and $17M for the June qtr. I'd have to ask if their revenue structure has changed to higher margin business which they hope can swing a profit from operations one of these days. Also, how is their balance sheet great? I mean, once you take out the goodwill, their liabilities were more than their assets in the June 10Q. I will agree it gets a little better with the $18M that just came in, but it's not a strong balance sheet even then. Bottom line is, this company has made no profits from operations for as far back as I can see, and I don't see any catalyst( like a big contract) that has happened to suggest they're in a turnaround. The $18M will help keep them alive, but I don't see how that will make them profits. I think this one belongs on the Zipcode Changers Board. Wade