Re: Somethin to think about.
in response to
by
posted on
Nov 10, 2009 10:33AM
stocwiz, when analysts start taking a closer look and recognize the wide margins to EDIG, and as EDIG moves well above its baseline overhead, which will not increase much as revenues increase, the margins will be that much bigger and the net will move up dramatically.
Critical mass accelerates as we move past the static overhead levels. Opertaing expenses under $3 million and DM's 40% and the net percentage climbs dramatically as we move above the static overhead levels.
$11 million gross equated to about $3 million net after all was said and done.
$30 million gross equates to about $15 million net...
So if you triple your gross your net moves up 5 fold.
It's not only about the gross in EDIG's case.
"Operating expenses for fiscal year 2009 were $2.8 million, compared to $3.0 million in fiscal year 2008. The decrease resulted from reduced personnel and reassigning certain engineers and technicians to customer support and service roles, offset by increased legal expenses."