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Message: Re: Analysis of the current 10-Q - richardo / Cautious / DaBoss..John / OZ
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Aug 25, 2007 10:17AM

…in the range of $10-14 million based on the current operations cost.

Good point.

At $2.7M a Q (for those without a calculator -- that's $10.8 annually) in top line revs, they would likely "approach" breakeven, but probably not be there unless the direct sales increased enough to make the higher margins cover. At this point, it seems the third party sales are dominate. IMO, that's not bad at all as it means more boots on the streets selling our stuff. Even some of my bad sales guys fall into a deal or two.

That ~$11M sales is a tall order but worth the speculation while we wait to see what is next on EDIG's agenda. The fact that we now have more than one major customer is a BIG plus to me. Obviously, we need more sales, but being at the mercy of one customer has never worked out very well...in fact, it still smells in Utah.....one of these days we need to flush that issue as Wencor is simply a thorn in our arse -- and not much of an IFE competitor if they don't ship some product.

Thanks for your report from RP and all the great financial DD!

John

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