Revenues for the three months ended September 30, 2006 were $1,300,203 compared to $1,118,922 for the three months ended September 30, 2005 (restated), an increase of $181,281 or 16%. DDSI generates its revenues through software licenses, hardware, post customer support arrangements and other services. CGM generates its revenue through the manufacturer and distributor of indicative and barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers as well as a number of highly specialized authentication products. The increase in DDSI's revenue is attributed to the purchase of CGM Applied Security Technology, Inc in March, 2005 and an increase in its revenue for the comparable three month period.
Cost of revenue for the three months ended September 30, 2006 was $291,038 compared to $296,024 for the three months ended September 30, 2005 (restated), a (decrease) of ($4,986) or (2%). The decrease was attributable more efficient purchasing procedures of raw material and more efficient production procedures put into place. Cost of revenue sold as a percentage of revenue for the three months ended September 30, 2006 was 22% of total revenues.
Revenues for the Nine Months ended September 30, 2006 of $3,404,896 compared to $2,143,310 for the Nine Months ended September 30, 2005 (restated), an increase of $1,261,586 or 59%.
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