Question 7 Compute Gross Margin % for the most recent four quarters: 1st quarter (ending 9/20) 2nd quarter (ending 12/20) 3rd quarter (ending 3/21) 4th quarter (ending 6/21) Describe the pattern you observe? Gross Margin %= Sales-Cost of Goods Sold t Salest Standardized Quarterly Balance Sheet Report Date Scale Total Assets Total Liabilities Total Equity Total Liabilities & Equity Standardized Quarterly Income Statement Report Date Currency Audit Status Consolidated Scale Sales Revenue Cost of products sold Gross Profit Selling General & Admin Research & Development Other income (expense), net Interest expense Earnings (loss) before income taxes Income taxes Net Income Net earnings (loss) per share basic - Net earnings (loss) per share - diluted 09/30/2016 12/31/2016 03/31/2017 06/30/2017 09/30/2017 12/31/2017 03/31/2018 06/30/2018 09/30/2018 12/31/2018 03/31/2019 06/30/2019 09/30/2019 12/31/2019 03/31/2020 06/30/2020 09/30/2020 12/31/2020 Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands 4466000 4568000 4629000 4573000 4600000 4758000 5444000 5060000 5058000 5073000 5162000 5116000 5397000 5459000 5850000 6213000 6777000 6855000 5662000 4177000 4298000 289000 4466000 4225000 404000 4031000 542000 4008000 592000 3998000 760000 4758000 4607000 4334000 837000 726000 5444000 5060000 270000 4568000 4381000 677000 5058000 4331000 742000 5073000 4381000 781000 4557000 4847000 4904000 559000 550000 555000 5155000 695000 5850000 5305000 908000 6213000 5475000 1380000 6855000 4629000 4573000 4600000 1115000 6777000 5162000 5116000 5397000 5459000 1477000 1647000 895000 1416000 807000 1473000 1551000 830000 1842000 1005000 803000 777000 827000 885000 09/30/2016 12/31/2016 03/31/2017 06/30/2017 09/30/2017 12/31/2017 03/31/2018 06/30/2018 09/30/2018 12/31/2018 03/31/2019 06/30/2019 09/30/2019 12/31/2019 03/31/2020 06/30/2020 09/30/2020 12/31/2020 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD Not Not Not Not Not Not Not Not Not Not Not Not Not Not Not Not Not Not Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands 1443000 1406000 1500000 1627000 1506000 1449000 1783000 1983000 1916000 827000 878000 893000 843000 810000 951000 1054000 996000 643000 673000 734000 663000 639000 832000 929000 920000 356000 377000 384000 348000 350000 453000 493000 417000 32000 34000 38000 30000 34000 39000 42000 7000 -2000 -1000 2000 -5000 19000 -1000 -24000 -24000 -22000 -25000 -25000 -24000 -23000 -25000 224000 240000 292000 258000 235000 297000 395000 526000 42000 53000 51000 55000 50000 56000 85000 109000 182000 187000 241000 203000 185000 241000 310000 415000 1.42 1.46 1.89 1.61 1.48 1.92 2.45 1.4 1.44 1.87 1.46 1.89 2.42 1517000 868000 649000 358000 640000 629000 650000 752000 673000 609000 1691000 1563000 947000 744000 374000 37000 678000 837000 456000 328000 325000 362000 394000 338000 31000 32000 35000 37000 32000 32000 -3000 32000 -80000 -5000 23000 -16000 15000 3000 16000 40000 15000 -24000 -22000 -22000 -22000 -18000 -21000 -20000 337000 31000 -6000 -20000 227000 -6000 233000 1.81 264000 227000 247000 295000 85000 77000 351000 32000 3000 -24000 268000 58000 210000 1.65 1.62 75000 279000 87000 192000 93000 201000 242000 61000 181000 1.39 -18000 306000 89000 217000 1.68 332000 71000 259000 179000 149000 172000 1.39 1.16 1.34 1.55 1.49 3.28 2.06 1.36 1.14 1.31 1.52 1.46 1.77 1.37 1.66 1.59 3.22 2.03 Question 7 Compute Gross Margin % for the most recent four quarters: 1st quarter (ending 9/20) 2nd quarter (ending 12/20) 3rd quarter (ending 3/21) 4th quarter (ending 6/21) Describe the pattern you observe? Gross Margin %= Sales-Cost of Goods Sold t Salest Standardized Quarterly Balance Sheet Report Date Scale Total Assets Total Liabilities Total Equity Total Liabilities & Equity Standardized Quarterly Income Statement Report Date Currency Audit Status Consolidated Scale Sales Revenue Cost of products sold Gross Profit Selling General & Admin Research & Development Other income (expense), net Interest expense Earnings (loss) before income taxes Income taxes Net Income Net earnings (loss) per share basic - Net earnings (loss) per share - diluted 09/30/2016 12/31/2016 03/31/2017 06/30/2017 09/30/2017 12/31/2017 03/31/2018 06/30/2018 09/30/2018 12/31/2018 03/31/2019 06/30/2019 09/30/2019 12/31/2019 03/31/2020 06/30/2020 09/30/2020 12/31/2020 Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands 4466000 4568000 4629000 4573000 4600000 4758000 5444000 5060000 5058000 5073000 5162000 5116000 5397000 5459000 5850000 6213000 6777000 6855000 5662000 4177000 4298000 289000 4466000 4225000 404000 4031000 542000 4008000 592000 3998000 760000 4758000 4607000 4334000 837000 726000 5444000 5060000 270000 4568000 4381000 677000 5058000 4331000 742000 5073000 4381000 781000 4557000 4847000 4904000 559000 550000 555000 5155000 695000 5850000 5305000 908000 6213000 5475000 1380000 6855000 4629000 4573000 4600000 1115000 6777000 5162000 5116000 5397000 5459000 1477000 1647000 895000 1416000 807000 1473000 1551000 830000 1842000 1005000 803000 777000 827000 885000 09/30/2016 12/31/2016 03/31/2017 06/30/2017 09/30/2017 12/31/2017 03/31/2018 06/30/2018 09/30/2018 12/31/2018 03/31/2019 06/30/2019 09/30/2019 12/31/2019 03/31/2020 06/30/2020 09/30/2020 12/31/2020 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD Not Not Not Not Not Not Not Not Not Not Not Not Not Not Not Not Not Not Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands 1443000 1406000 1500000 1627000 1506000 1449000 1783000 1983000 1916000 827000 878000 893000 843000 810000 951000 1054000 996000 643000 673000 734000 663000 639000 832000 929000 920000 356000 377000 384000 348000 350000 453000 493000 417000 32000 34000 38000 30000 34000 39000 42000 7000 -2000 -1000 2000 -5000 19000 -1000 -24000 -24000 -22000 -25000 -25000 -24000 -23000 -25000 224000 240000 292000 258000 235000 297000 395000 526000 42000 53000 51000 55000 50000 56000 85000 109000 182000 187000 241000 203000 185000 241000 310000 415000 1.42 1.46 1.89 1.61 1.48 1.92 2.45 1.4 1.44 1.87 1.46 1.89 2.42 1517000 868000 649000 358000 640000 629000 650000 752000 673000 609000 1691000 1563000 947000 744000 374000 37000 678000 837000 456000 328000 325000 362000 394000 338000 31000 32000 35000 37000 32000 32000 -3000 32000 -80000 -5000 23000 -16000 15000 3000 16000 40000 15000 -24000 -22000 -22000 -22000 -18000 -21000 -20000 337000 31000 -6000 -20000 227000 -6000 233000 1.81 264000 227000 247000 295000 85000 77000 351000 32000 3000 -24000 268000 58000 210000 1.65 1.62 75000 279000 87000 192000 93000 201000 242000 61000 181000 1.39 -18000 306000 89000 217000 1.68 332000 71000 259000 179000 149000 172000 1.39 1.16 1.34 1.55 1.49 3.28 2.06 1.36 1.14 1.31 1.52 1.46 1.77 1.37 1.66 1.59 3.22 2.03