The wages bill has been high for some time, it needed to be so...

The wages bill has been high for some time, it needed to be so they could get the qualified workforce in place for accreditation and be in a position to deliver first parts on time.
If you compare it to the last quarterly wages have pretty much remained stable but revenue from sales has gone from 244k to 928k. Hopefully the gap will continue to narrow rapidly as production increases.
AS such they have achieved one of their statements in the Sep 1/4ly where they said revenue would increase from ramping up of production.

However, I was surprised that they only made mention of group 1 parts having been produced so far but from the last quarterly they said group 2 parts would be produced from Nov 12 as well.

From Sep 1/4ly

"To date, Quickstep has entered two LTAs. “Group 1” components are already being supplied, including portions of
the main F-35 structure and supports. More complex “Group 2” JSF components will be produced from the
Bankstown facility from November 2012."

then from the Dec 1/4ly

Under the MOU, Quickstep has executed two Long Term agreements (LTAs) to supply Group 1 and Group 2 parts
for the JSF program over the next decade, and has already commenced supply of Group 1 parts.

Why the delay in gp2 parts?
Why hasn't there been an announcement around Nov/Dec to say gp2 parts have not been supplied yet,as was to be expected from the report.

All that being said revenue has doubled so if this is the case it has just been a result of ramping up production of gp1 parts and as such the rate of revenue increase could be quite impressive if gp2 production is realized this 1/4.

AS far as new contracts go, in their annual report they stated that offers had been made to NEW and existing customers FOR NEW BUSINESS and contracts were expected in the next few months. the latest 1/4ly seemed less bullish to me on this subject.

With respect to cash burn the $6 mil in advance payment will buy some time. (Is this a 50% payment for the herc wing flap contract???). I was quite pleased to see this because the $1.6mil they had in the bank as of Dec 31 wouldn't have lasted long.

And as for sale of machines, I don't this will happen until the vector programme is completed, once its approved for use in the JSF programme watch the interest grow.

All just my thoughts as I wallow away on long service leave.
AS always DYOR
GLTAH