I doubt very much (as I have previously posted) that ATC is operating at a gross margin of 40%.
Based on what you have presented, vs what others have said, ATC may well have a high cost overhead structure which will hamper its future profitability (if any) unless carefulyl controlled.
In these circumstances, references made to gross margin are about as useful, and foretelling of a company's true operating viability, as are references to EBITDA.
If used correctly, they each can serve as a useful barometer of "raw" selling performance. But, in the instance of some of our colleagues out there, the 40% gross margin being quoted seemingly translates into underlying profitability.
In many respects, the argument is not dis-similar to the suggestion of other colleagues that UEC's business is growing strongly, helped albeit by a $6.0m one-off payment from Lucent which, once excised from the equation saw net operating cashflow of -$3.5m for UEC in Q2,02.
ATC Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
