You can draw your own conclusions from the calculated percentages below. It seems to me that the numbers are not unusual for such a company as PTSC. A few of my observations are below.

· R&D of $117,781 per Q equates to less than 4 good engineer’s salary. All engineering salaries may not be included under the R&D entry, but the number could be a concern given the fast moving competitive market they are in. Does anyone else have a better interpretation of this number?

· We can only guess at which part of costs are fixed and which parts are variable. Variable costs often go up as sales go up.

· Minimum additional revenue required to breakeven (assuming all expenses are fixed – simplistic, they are not) would be $2,529,354. Total revenue would then have been 3,939,555. So we might guess that the most optimistic estimate is PTSC needs at least $4M in gross revenue to breakeven. Looking at expenses %, a more realistic estimate might be at least $8M gross income to breakeven.

· Note: Each $4 million of net income = 1 cent earnings per share. My guess is they need $8M in gross income to breakeven, then an additional $8M gross income for each 1 cent EPS.