You are making comparisons between receipts in a quarter, and the staff costs for that quarter. It doesn't work that way.
Receipts are usually recorded a quarter after the invoicing, whereas staff are paid fortnightly I would guess.
So the $1.23m in receipts for the quarter cannot be compared to the $999k spent on staff. The extra staff spend this quarter just gone would have been generating product (or sales) that wont be receipted until this current quarter.
The 4c stated receipts this quarter will be at least $1.5m. So if you are going to compare staff cost to receipts, its more like $1m to >$1.5m, a maximum of 66%.
The situation is exactly the same for inventory spend. Large inventory spends in the last two quarters will have been acquiring components necessary to build the spiking orders this quarter and going forward. These sales will be receipted in coming quarters.
As for your comments on scale ...
After a trial with two cameras in late 2020 their un-named Telco client has subsequently had 15 cameras installed in Q3, with 35 more to come Q4, and expected further growth in FY22. So I see no issue with the company scaling up, that's in fact exactly what is happening right now with plenty of evidence within the 4C numbers.
With gross margins of 60%+ on sales and 70%+ on rentals - scaling shouldn't take long before the opex diminishes further relative to the revenues.
Finally, you state you are looking for $1.55m in revenue this quarter. GD has forecast cash receipts in excess of $1.5m, so I think revenue will be markedly higher than the $1.55m you are looking for.
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SP3 Price at posting:
7.3¢ Sentiment: Buy Disclosure: Held
