Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Ted Jackson from Cantor Fitzgerald.
Ted Jackson - Cantor Fitzgerald
Too bad on the top line, but real nice expense control, nice price to the bottom end?
Doug Sabella
Thank you.
Al Wood
Thanks.
Ted Jackson - Cantor Fitzgerald
A few questions, just quickly, first of all, if you're profitable on a pro forma basis, what would be the pro forma share count for the quarter?
Al Wood
The pro forma share count for the quarter would have decreased by about 1.2 million shares Ted or 1.3 million shares. I'm sorry, I beg your pardon, I was misstating that. It’s the same. I beg your pardon.
Ted Jackson - Cantor Fitzgerald
It’ll be the same, right. So you wouldn’t have anything come into the money and take the share account?
Al Wood
No.
Ted Jackson - Cantor Fitzgerald
What was depreciation and CapEx for the quarter?
Al Wood
Yes. And consistent with usual question, because Ted, I was prepared for this, so depreciation is $605,000 and capital expenditures where we purchased on $196,000.
Ted Jackson - Cantor Fitzgerald
Would those levels be constant, would you expect that to be relative consistent in the fourth quarter?
Al Wood
With respect to the depreciation and its entirely consistent, with respect to historical purchase of equipment its actually a little bit light, but that is reflective of our lower spending rate. So, I expect that going forward to be around 2 to $300,000 purchases of property and equipment.
Ted Jackson - Cantor Fitzgerald
Then, you had a great gross margin during the third quarter I know it’s a tough question to ask, given the lumpiness of your business. But would you be able to sustain these margin levels or?
Al Wood
So, we have had in prior quarter, for example, in Q1 we had a very strong gross margin and in Q4 of last year. So, we seeing the consistent -- often delivery above our targeted margin of 55% to 60%, this time it’s again a record level for us. We don’t think that on a long-term basis that’s sustainable. So we are still targeting 55% to 60%.
Ted Jackson - Cantor Fitzgerald
So, it would be prudent for us to, in the fourth quarter to expect you to be within your pro forma range?
Al Wood
That is correct. That’s our expectation.
Ted Jackson - Cantor Fitzgerald
- To read the full transcript on Seeking Alpha, click here »
