ECS has always been in growth mode. So I’m not sure why gross profits are down over the last 3Q. What has changed? Haven’t they always needed to have costs up front on each quarter.
Q1 was effected by seasonal sales, but this report also follows the trend.
Is the increase in growth rate this year compared to previous significant enough to justify all of the margin loss? Or is there actually real market pressure on the products being sold?
Given the market reaction, I’m very cautious. It’s a hold for me still.
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- Ann: Quarterly Activities/Appendix 4C Cash Flow Report
Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-27
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