I agree with your numbers. But I would like to add the following:
SSB states: "we expect a strong 3Q" they continue to say that they expect RDWR to exceed the estimates.
My analysis of this information is as follows;
Assuming a 30% increase in sales means $11M. this translates to a $2.5M sales increase which translates to additional profit margin of $2.1M (based on 84% cost of goods sold).
This $2.1 million less assumption of increased expenses of $1.575M (last Q increased by $1.5M) means additional net income of $525K which will mean very close to break even in operating income and an additional 3 cents EPS over the prior quarter($525K/17,000,000), or EPS of 10 cents for the quarter.
We have to apreciate your estimate. Almost the same as results released. I am glad that I agreed with the numbers. I also made nice investments. In coming days analysts should update their forecast. Looks like October was also good. I assume growth will continue in current quarter.With margin profit above 80%, an EPS for Q4 of $.12 will not be a surprise. Problem is what they are going to do with all the cash Company has in assests. If not acquiring FFIV maybe a dividend to miserable share holders might be a good idea. What do you think will be share price next week?
MERAVHON, its good to hear from you. this board became a very hostile place in the last few months.
yes, a 30% to 33% increase for shure. people keep forgeting that this company still sits on a very big pile of $$ in cash, and it is in the middle of a booming market. also, judging from the zisapel's past actions in other companies, rdwr is near the stage of maturing, i.e we can expect some m&a in the next 12-18 M.
I was busy trading with other stocks with higher volume. But today i made adecion to by RDWR. Many investors are expecting that EPS will be $.10 . First call is only $.04!!! This will be accepted as abig surprise and there is a chance to new investors to pay attention to this Company.