This upcoming quarter they're expecting to do 5.88% sequential growth which equates to roughly 25% annual growth. They have actually managed to keep their overhead costs in check as they have grown slower than revenues.
So if I assume 25% top line with 20% expense growth, I get $82.9 MM Revenues.
Using same margins as last year I get $53.9 Gross Profit.
Expenses were $34.5 MM so a 20% bump up makes them $41.4 MM next year.
That equates to $12.5 MM operating income.
They have a huge cash balance that they earn interest income on. Last year they had $79.9 MM cash at 12/31/12. They paid about a $7.8 MM dividend in June and as of 6/30/13 they had a $83.3 MM cash balance. That's a cash boost of about $11 MM in the first 2 quarters excluding the dividend. That's a little high but they should do about $14 MM in 2013. Anyway, Int Inc last year was $2.6 MM. I'm assuming another $2.8 MM. Tax rate was around 14%.
$12.5 MM Op Inc
+$2.8 MM Int Inc
=$15.3 MM Net Income
After tax (14%)
Shares = 29.9 MM
EPS = $0.44
They pay 60% of income out as a dividend. That's $0.26. Based on a price of $6.44 that equates to a 4.1% dividend.
So you get a 4% yield, 25%+ growth, and the company has $2.90 a share in cash. Kind of like low hanging fruit, no? Anyone else see something I'm missing?