Gross Profit In year 2009, the Company has gross profit and gross profit margin decreased to Baht 125 million and 21% respectively, as impact from economy and politic. Gross profit margin in last year seemed higher than current year because last year the Company had more revenues from overseas with its gross profit margin higher than domestic revenues. Selling and Administrative Expenses As revenues decreased, the Company did try to balance overhead especially in the relation to employees, decreasing by Baht 24 million. Therefore, selling and administrative expenses decreased by 15% to Baht 157 million. Net Income (Losses) and Earnings (Losses) per Share As above explanation, the Company has net loss in year 2009 of Baht 30 million and net loss per share of Baht 0.26 as well as return on assets and return on equity are shown negative at 6% and 10% respectively. Cash Flows From a decrease in operation for year 2009, the Company used cash for operating activities around Baht 14 million and investing activities around Baht 7 million of which is for fixed assets purchases and computer software. In addition, the Company used cash for financing activities around Baht 32 million mainly for dividend paid of Baht 22 million. As such, as of October 31, 2009 the Company has cash and cash equivalent of Baht 91 million of which Baht 60 million is invested in bill of exchange for interest income. ƒ
Analysis of Financial Position Since an operation shrink, total assets as of October 31, 2009 are accordingly down by 30%; however, the Company is still very strong in the financial position and has sufficient funds from cash balances more than Baht 90 million, balance of current assets higher than balance of current liabilities almost 2.5 times. In addition, balance of total liabilities per total assets is less than 0.29 times. As of October 31, 2009, the Company has the net book value of Baht 2.59 per share. Cash and Cash Equivalents Cash and cash equivalent as of October 31, 2009 decreased to Baht 91 million or 22% of total assets as a result of operation down. However, the Company has kept liquidity by cash current ratio improved from 0.2 times to 0.8 times.
Operating Results and Financial Position
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