Ann: Connected IO Activity Growth and Company Update, page-11

Agree with you , however what is disturbing for me is the conflicting statements .
Company mentions "renegotiated manufacturing costs to increase gross margins on sales from 30% to approx 50% on some products"
Given on last quarter's Appendix 4C receipts were $522K and manufacturing costs were $737K I can not see any 30% margin there in fact a loss . I could understand that loss if inventory levels were being built up , but that is not the case in fact quite the contrary as inventory is down $11k on the previous quarter .
SO how do they come up with a 30% margin ???????????
I am really starting to feel like someone is trying to pull the wool over my eyes , but that someone is pretty clumsy with numbers .
As to the 40% reduction in Overheads for the quarter that is only around a $240K drop in costs and we recorded a $883K loss last quarter , so to me it looks like we will have at least another $500K loss for the quarter
I feel These guys are under-delivering especially on a gross margin basis it should be in excess of 60% and actually show it as such on the Appendix 4c