A kindergarten usually takes two years to break even and improve utilization for a certain level. Therefore, the gross margin during the quarter was impacted as new schools are not profitable yet. But in most cases, our kindergartens over-delivered. And as the new ones continue to ramp up, we are confident that gross margins will normalize at 50% level in the fiscal year.Looking into detailed operating expenses, research and development expenses are up 26%. R&D accounted for 2% of net revenue compared to 3% during the same period in fiscal 2011.
Noah Education CEO Discusses F1Q2012 Results - Earnings Call Transcript
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts