posted
Looks good, atleast makin something, hope will ride up next week, mayb we might see 0.0020 level again
GROSS PROFIT
Gross profit is calculated by subtracting all direct costs from netrevenue. The direct costs of engineering services include wages, benefits,software training and project expenses. The average gross profit for theengineering division was 33% for the three months ended March 31, 2004 comparedto 30% for the three months ended March 31, 2003. Gross profit for the threemonths ended March 31, 2004 increased by $290,000 or 42% to $990,000 compared to$700,000 for the three months ended March 31, 2003. The increase in gross profitfor technical publications and engineering services is a result of the increasein higher margin contracts in engineering design, technical publications anddocumentation compared to the lower margins earned on traditional on-siteengineering support. In addition, we are engaging in more time-and-materialsbased contracts versus fixed-cost contracts which prevents against project andcosts overruns.
The direct costs of information technology documentation servicesinclude contractor wages, benefits, and project expenses. The average grossprofit for the information technology division for the three months ended March31, 2004 was 17% compared to 20% for the three months ended March 31, 2003. Thedecline in gross profit in the current period is a result of the decrease inhigher margin permanent placements and the retention of lower margin contractplacements of documentation specialists.
RESULTS OF OPERATIONS
STATEMENTS OF OPERATIONS--PERCENTAGES (UNAUDITED) THREE MONTHS ENDED MARCH 31, ------------------------------ 2004 2003 ---- ----
REVENUE 100 % 100 % ---- ---- COST OF SERVICES 67 % 71 % ---- ----GROSS PROFIT 33 % 29 % ---- ----EXPENSES Administrative 19 % 28 % Selling 10 % 10 % Depreciation and amortization 5 % 7 % ---- ---- Loss from continuing operations before interest charges (1)% (16)% Interest charges 24 % 172 % ---- ----Loss from continuing operations before income taxes (25)% (188)% Income taxes -- % -- % ---- ----Loss from continuing operations (25)% (188)% Loss from discontinued operations (1)% 1 % Net Loss (26)% (187)% ---- ----
RESULTS OF OPERATIONS
Revenue. Revenue for the three months ended March 31, 2004 increasedby $570,000 or 23%, to $3,060,000, as compared to $2,490,000 for the threemonths ended March 31, 2003. The increase is primarily attributable to newcontracts with existing automotive, aerospace and defense customers that wereawarded in the fourth quarter of 2003.
Cost of Services. The cost of services for the three months ended March31, 2004 increased by $290,000, or 16%, to $2,060,000, as compared to $1,770,000for the three months ended March 31, 2003. The increase in cost of services isconsistent with the increase in revenue. However, the cost of services as apercentage of revenue decreased from 71% for the three months ended March 31,2003 to 67% for the three months ended March 31, 2004.
Gross Profit. Gross profit for the three months ended March 31, 2004increased by $280,000, or 39%, to $1,000,000 compared to $720,000 for the threemonths ended March 31, 2003. The increase in gross profit is consistent with theincrease in revenue. As a percentage of revenue, gross profit increased from 29%for the three months ended March 31, 2003 to 33% for the three months endedMarch 31, 2004. The increase in gross profit is a result of the increase inhigher margin contracts in engineering design, technical publications anddocumentation compared to the lower margins earned on traditional on-siteengineering support. In addition, we are engaging in more time-and-materialsbased contracts versus fixed-cost contracts which prevents against project andcosts overruns.
Expenses. Expenses for the three months ended March 31, 2004 decreasedby $100,000, or 9%, to $1,030,000 compared to $1,130,000 for the three monthsended March 31, 2003.
Administrative expenses decreased by $120,000 or 17% to $570,000 forthe three months ended March 31, 2004 compared to $690,000 for the three monthsended March 31, 2003. General administrative expenses including salaries andrent have decreased significantly over last year as a result of restructuringand general cost cutting.
Selling expenses for the three months ended March 31, 2004 increased by$60,000, or 24%, to $310,000 from $250,000 for the three months ended March 31,2003. The increase in selling expenses is consistent with the increase in salesas the sales team's compensation is commissioned based.
For the three months ended March 31, 2004, depreciation and amortizationexpenses decreased by $50,000, or 26%, to $140,000 from $190,000 for the threemonths ended March 31, 2003.
quote:Originally posted by rajarammx: Actually this is not bad...Net Profit Increase....Revenue Increase & overall loss decreased substantially....
Thinkpath Releases Financial Results for the Quarter Ended March 31, 2004 Monday May 24, 7:00 am ET
TORONTO, May 24, 2004 (PRIMEZONE) -- Thinkpath Inc. (OTC BB:THTHF.OB - News) today announced financial results for the quarter ended March 31, 2004. ADVERTISEMENT
Revenues for the quarter ended March 31, 2004 were $3,056,700 compared to $2,490,288 for the quarter ended March 31, 2003. The increase in revenue is attributable to new contracts with existing automotive, aerospace and defense clients that were awarded in the fourth quarter of 2003.
Gross profit for the quarter ended March 31, 2004 was 33% compared to 29% for the quarter ended March 31, 2003. The increase in gross profit is a result of the focus on higher margin contracts in design, drafting and technical publishing compared to the lower margins earned on traditional on-site engineering support.
For the quarter ended March 31, 2004, the company recorded an operating loss from continuing operations of $29,314 compared to an operating loss of $409,908 for the quarter ended March 31, 2003. Included in the loss is depreciation expense of $142,265 for the quarter ended March 31, 2004 and $192,064 for the quarter ended March 31, 2003.
For the quarter ended March 31, 2004, the company recorded a net loss of $792,230 or (0.00) per share compared to a net loss of $4,655,583 or (0.08) per share for the quarter ended March 31, 2003. Included in the net loss for the quarter ended March 31, 2004 is interest expense of $624,211 related to the beneficial conversion feature on the 12% Senior Secured Convertible Debentures issued in the first quarter pursuant to financing arrangements entered into on December 5, 2002 and March 25, 2004.
At March 31, 2004, the company had a cash flow deficiency from operations of $763,404 largely attributable to the increase in accounts receivable of $321,761 and the decrease in accounts payable of $424,759. At March 31, 2003, the company had cash flow from operations of $251,300.
At March 31, 2004, the company had a working capital deficiency of $1,966,919 and stockholder's equity of $2,763,452 compared to a working capital deficiency of $2,756,405 and stockholder's equity of $2,260,892 at December 31, 2003.
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