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Message: Re: EMMA/Minister..it was 4000 units per year for break-even ..jetother

Re: EMMA/Minister..it was 4000 units per year for break-even ..jetother

posted on Nov 10, 2007 10:06AM

We have gone over the math for months and the 4000 unit number will not give us a breakeven.

Some of the calculations by others forget the other expenses which vary considerably by quarter and by year.

Based on the past Income Statements and depending on the type of revenue generated (Direct sales, distributor sales, sales with a service content) the minimum number of units is 6k to 8k. 

The better test is using revenue since marketing the eVUs can go through three different channels.

I have stated the following many times with slight variations<

"A good quarter looking at the Income Statement, but as I have stated in prior posts, we need a continuation of these numbers every quarter as a minimum, would be nice to see some percent improvement each succeeding quarter.

To breakeven for a year, I still believe we need $11-13 million dollars with most of the revenue coming as direct sales, not through distributors. Some may include sevice revenue as well.

The real key to growth, it will be hard to continue with increased revenue in the IFE segment, will be can we begin to market the eVU in added market segments to sustain the growth curve on a long term basis? We need to show revenues coming from non IFE to generate sufficient profits to attract new investors and ultimately uptrend the share price."

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