Terp
There are a couple of reasons.
-TankLink is struggling due to the economic meltdown so revenues for this unit are down sequentially. Not great news but if we believe this is the reason its only a matter of time before this unit returns to growth. That said it only represents about 5%+- of revenue.
-Telguard equipment cost per unit dropped from $141 last quarter to $131 this quarter but this is good because margins are still intact.
The result is that gross margins continue to make gains quarter over quarter.
I'll post an updated model sometime tonight where you can see where things line up vs the previous quarter.
