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RS Components press release mentions RPi

Former Member
Former Member over 13 years ago

RS Components issued a press release today:

 

http://www.electrocomponents.com/media/press-releases/2012/07/13th/

 

saying

"In the first quarter Group sales were at a similar level to last year.

The International business declined by 2% and the UK grew by 5%;

2% of which was accounted for by Raspberry Pi (1)."

 

Their first quarter ended 30 June 2012.  It isn't clear to me when

they say "2% of which" whether they are referring to 2% of UK sales

or 2% of worldwide sales.  If we assume it means worldwide sales,

then we can do some sanity checks.

 

They don't say what quarterly worldwide sales were,

other than similar to last year, and I don't see last year's

quarterly sales either.   Annual sales for 2012 were reportedly

£m  1,267.4, so dividing by 4 gives an estimated quarterly

sales of £m 317, and 2% of that is  £m 6.3 in RPi sales.

Dividing by an estimated £22.5 per unit gives an estimated

282000 units, which seems a little high to me.  So maybe the

2% means 2% of UK sales, since RPi sales seem to be more

concentrated in the UK.

 

They don't say what their RPi profit is, unfortunately, but their

annual report says their gross margin was 46.8% in 2012.   I think

RPi gross margin is much lower than that, so RPi probably accounts

for much less than 2% of worldwide profits.

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  • Former Member
    Former Member over 13 years ago

    the way they write these things is always in wall street analist speak and never actually makes much sense to anyone.

    On first glance I'd read it as 2% of 5% - or 0.1% which shows just how much nonsense you can hide by using percentages of an unknown.

     

    Also, from my recent "Raspberry Pi – Time to order" email from RS: "Note: We accept payment via Visa, MasterCard or PayPal. Payment will be taken at the time of your order." So with a 14 week estimated time to ship you have to wonder if they're reporting revenue this quarter for something they won't see the negative side of for another two quarters. Or alternatively are they using the cash they've taken early to fund the manufactruing ?

    Don't suppose it really matters, this sort of inventive accounting seems to be common for any large enough business and is nothing particularly unusual.

     

    I did think it was a bit cheeky to be taking the money up front though, especially given their lead times and being (slightly) more expensive than Farnell who don't take money up front.

     

    While 282000 does seem high, and previous indications were that Farnell were likely outshipping RS by quite a bit, if they're reporting stuff that won't be shipped for some unknown period but likely at least 14 weeks it may not be all that much of a leap. Especially if you believe what we're told elsewhere on there being 500K+ shipped by the end of the year.

     

    But anyway, for a small cheap gadget like the RPi to be singled out as being 2% of their sales is quite impressive. I wonder what their sales of BeagleBone or other similar small dev boards are like in comparison.

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  • Former Member
    Former Member over 13 years ago in reply to Former Member

    agreed 2% of sales for the first quarter is impressive.

    2% of profits would be much more impressive, but they

    claim to be selling around breakeven, and not in a

    position to raise prices to a profitable level.  Of course,

    it would be most impressive if they could redesign it a

    bit so it actually worked closer to its potential.

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  • Former Member
    Former Member over 13 years ago in reply to Former Member

    agreed 2% of sales for the first quarter is impressive.

    2% of profits would be much more impressive, but they

    claim to be selling around breakeven, and not in a

    position to raise prices to a profitable level.  Of course,

    it would be most impressive if they could redesign it a

    bit so it actually worked closer to its potential.

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