The table below offers three growth scenarios for revenue: 15% for low growth; 20% for medium, yet below historical average; and 30% close to their historical average. It identifies how many months it will take for revenue to return to $30 million quarterly rate from the expected $20 million quarterly rate expected in the 4th quarter 2006.
So is CRYP currently a value buy, given these revenue assumptions? The conservative investor should delay taking a position until the revenue and profit situation becomes clearer after the next earnings release in 2007. An aggressive stance might be to begin building a position on price dips, if confident that the revenue growth will remain close to historical levels.