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Bobwins

04/21/07 1:06 PM

#60 RE: alien42 #59

I agree that manufacturing capacity has increased greatly. Whether that will translate into increased revenues is the question. I believe a significant portion of the new capacity will be used to sell to existing customers. Their stats from fy 2006 were 107 manufactured and 123 resold.

Obviously the gross margins should be much better for the manufactured vs the resold. So 2007 could see 300 tons sold with 100% manufactured in house. This should dramatically increase gross margins and profits and offset the margin squeeze that hurt 2006 results. However the increase in gross revs may be much more modest.

Bobwins