Re: note today from RP-Sunpoop / LL/jhawk / DaBoss...John...GI a critique
in response to
by
posted on
Aug 15, 2007 08:46AM
Gone all day yesterday, 10 hours at MD Anderson and haven't gone over the 10-Q in detail.
A few brief comments.
Good to see some nice revenue for the quarter and a very nice backlog in the system. I am concerned with the gross margin ratio of the sales only, a 14% ratio, but we don't know the split of direct and distributor sales, chances are that Mezzo was a major factor.
We do need to see a gross margin between 30 and 40% if we are to expect a positive bottom line in the future.
Ten airlines provide a good customer base along with three of them being direst sales. A two fold increase in customers would be great if we could achieve that by year end.
Even though a mention of Healthcare, Travel, and Military was included, we have no evidence of this happening, you will remember that trials were provided to the health industry over a year ago with positive input from edig, yet no actual orders have materialized.
Balance sheet is still out of balance as current liabilities exceed current assets by a substantial margin, but in general there is improvement over past quarters.
The DM timing for actions is pretty vague; one shows that it is still this quarter and the 10-Q states this fiscal year. Not to bright from a shareholders point of view.
There are probably many more areas open to discussion, but I think these are key points, at least going over the data rather quickly.
All in all, I'm impressed with the effort over the last few quarters and the ship may have turned the corner. Get the Utah issue settled and actual actions of how DM will approach the lawsuits will complete the story.
Good luck to all of us who have been so patient.