Tuesday, May 15, 2007


DFNS released their 10Q today ontime which is GREAT!
(Here is the link if you would like to read the 10Q
http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?FilingID=5179318&Type=HTML )

Overall I think it is a VERY GOOD report.

They came in with $3.9 million in revenue and .02EPS.

The revenue # is a bit smaller then I thought but I will get to the why in a little bit.

The EPS was .02 (Actually they rounded up it is really about .017) Either way I will take it.
The EPS was the most important it shows they can earn a profit from the expanded sales which is BIG!

As I looked at the revenue # I see that the backlog of the company has JUMPED HUGE! They now have a backlog of $7.5 million! They had a backlog of just $3.5 million at the end of last year. So a $4 million jump in backlog. If just $1 million of that would have been filled. (Backlog = unfilled customer orders) we would have been sitting on almost $5 million in revenue for the Q1. I wasn't expecting that type of increase in backlog that is why my revenue estimates were high.

I have a couple of minor questions that I have sent via email to the company to get a bit more insight and I will pass that along when I get that information.

Based on the news releases the company received $4 million in local miltary orders that needed to be delivered by April and another 2.2 million that needed to be delivered by July. That is $6.2 million that needed to be delivered by July. So far thru March 31st only $1.5 million has been filled. Meaning $4.7 still need to be delivered (or put in backlog)
I also count up about $1.3 million from announced orders that need to be filled in Q2 for export miltary.

So unless everything goes into backlog in Q2 we should see some very big revenue #'s and hopefully some good earnings as well.

I think we will see a nice move in the stock today. (I would think at least, they have proved they can earn money.)

My target on DFNS IS $1.00 (Not today just overall)

FYI AYSI also released earnings but they aren't that good. If I get a chance today I will probably sell out of that stock from my IRA.

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