If the R&D yields an embedded system that garners bigger orders then it is worth every dime spent, even at the expense of short term profitability.

R&D is the life blood for a tech company and key to future revenues/success....what's the point, being profitable for one year or expanding into new markets with more customers that yield higher revenues down the road?

Certainly we all want to become profitable but I want to see growth as the key driving factor and you need to fund R&D to achieve that.