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HAUP - Hype or Real? What does SEC filling reveal?

|Includes: Hauppauge Digital, Inc. (HAUP)

Shorts are all over it . Seeing a stock rise up that much means a lot of $$ in their eyes. Longs are dreaming of another miracle company. The PR has done its job of putting its content to as many enthusiastic people as it could.

This weekend we saw HAUP release its Quarterly Report to SEC. I am just going to quote some data and findings from the report for everyone to see. Your views is your own.


The report can easily be found from many different places. One such place is Yahoo Financial.

Reference: http://finance.yahoo.com/q/sec?s=HAUP+SEC+Filings
Look for the 14th May 10-Q (Quarterly report) data. One can checked the summary or the 1mb full filings. Either way, following are the improvements the company has made in last three months vs previous quarter.

Last three months data vs previous three months data
======================... ======
1. Net sales increased by : $ 1,113,650

2. Gross Profit increased by : 4.64 %

3. Total Expense increased by $346,681 of which $265,782 (a big portion) is from R&D. Makes sense considering new products in the market. And this R&D % expense might go down the road considering if it gets successful.

4. Net loss from operations actually decreased by $1,248,193
Net loss decreased!

5. Net sales for the three months ended March 31, 2010 increased $1,113,650 compared to the three months ended March 31, 2009

6. A favorable mix of higher sales priced product contributed to a 1.67% increase in the average sales price while units sales increased by about 14.50%

7. Gross profit increased $901,512 for the three months ended March 31, 2010 compared to the same period in the prior year

8. Gross profit percentage for the three months ended March 31, 2010 was 27.92 % compared to 23.28% for the three months ended March 31, 2009, resulting in a gross profit percentage increase of 4.64%

9. Selling, general and administrative expense decreased $83,934 from last year's second quarter


The list can keep on going.

In short, one can feel that the HAUP has done better in managing its resources in last 3 months than previous quarter. Yes, HAUP is still making loss. But the loss has decreased substantially. And, one can easily feel that it might go to green by this year. Now, that is forward looking statements that one can only guess. Nobody can say for certainty what will happen in the future. However, with the data we have in our hand, one can very easily see that HAUP has improved in their financial. And, HAUP might still go further in long run.

NOTE: Author holds a long position in HAUP
. See SEC fillings from here http://finance.yahoo.com/q/sec?s=HAUP+SEC+Filings


Disclosure: Author holds a long position