DFNS Q3 ESTIMATES

Here are my estimates for Q3 for DFNS. (which ends September 30th but will be announced November 15th or so.)

Just rough #'s there is no way to know for sure. I think the revenue #'s could be close but its so hard to say with the earnings due to so many different expenses that vary each quarter but here are my guesses etc...

ALL INFORMATION IS STRICTLY BASED ON PRESS RELEASES FROM THE COMPANY OR PAST QUARTERLY REPORTS.

Revenues
-----------------
Local Civilian $800,000 (this tends to be about there average each quarter.)
Export Civilian $300,000 (If you look at backlog in the Q2 which is on page 13 they list $600k for US I took 1/2 of that # to be filled in Q3.)
Local Military $1,500,000 (Page 12 of Q2 report says they expect to do $3 million for the rest of the year. I took 1/2 that # to be filled in Q3)
Export Military $1,700,000 (Press release August 8th $1.2 million order due in Q3. Also backlog page 13 of Q2 report had $1.4 million I took $500k of that for Q3)

So that is a total of $4.3 million in revenue.

Is that down from Q2? YES As I said before I felt that Q2 would be the largest revenue quarter for DFNS for that year. That is why I was a little disappointed with the big tax issues DFNS faced in Q2. Otherwise we could have seen .03 for the quarter and this stock would be in the .80 range right now instead of .60.

As far as earnings this is where it gets tricky but I figured I would put the #'s out anyway.

$800,000 revenue. Local Civilian so far for the 6 months has been a 13% profit margin. I put a 10% margin on it for Q3 so $80,000 profits
$300,000 revenue. Export Civilian so far for the 6 months has been a 20% profit margin. I put a 15% margin on it for Q3 so $45,000 profits.
$1,500,000 revenue. Local Military so far for the 6 months has been a 24% profit margin. I put a 20% margin on it for Q3 so $300,000 profits.
$1,700,000 revenue. Export Military so far for the 6 months has been a 20% profit margin. I put a 15% margin on it for Q3 so $255,000 profits.

So a total of $4.3 million in revenue and $680,000 in profits.

Take 25% out for taxes ($170,000)

Down to $510,000 in net profits. (OF COURSE THIS DOESN'T INCLUDE CURRENCY EXCHANGE ETC..)

Which is about .017 EPS for the quarter. (They did $3.9 million in Q1 revenue and $478,000 in net income)

Add that to the other profits and after Q3 stands at roughly .053 EPS for the year.

AGAIN JUST A ROUGH ESTIMATE BUT UNLESS they keep a bunch back for Q4 I think the revenue #'s I presented here will be within 300-400k +/-.

Have a great day
Steve Hoven
alleycatnews@alleycatnews.net