First with Product Manufacturing and Operating costs, there have been some interesting changes over the last 3 Q's:
31/12 - $824,000 - Where no Logo would be included
31/03 - $2,894,000 - Approx. 2 months with Logo (accompanying 336% revenue/other sequential increase)
30/06 - $10,232,000 - Full 3 months with Logo (accompanying 45% revenue/other sequential increase)
Clearly a disproportionate increase to have been caused only from an extra month with Logo, and with the accompanying revenue increase in the 30/06 Q compared to the 31/03 Q, a similarly disproportionate increase.
Any thoughts on what might be driving this given these observations? My speculation would be around the Logo production side ramping heavily for work given the company has flagged a growth in enterprise pipeline of data centre, infosec projects etc. Likely this is where we would see costs ramp first, with revenue to follow.
The other standout is admin and corporate expenses. Going from $3,652,000 to $7,815,000 in just the last Q. A $4m odd increase. If that is all, or mostly, the additional legal costs it really mitigates the cost/loss blowouts and makes a better case for scalability of costs.
Some key areas to look into when the financials come at the end of the month.
All in my opinion, DYOR
MJ
GSW Price at posting:
75.0¢ Sentiment: Hold Disclosure: Held
