They have actually built cash and cash equivalents from $35 million in Q1 and Q2. Q3 is $41 million. They have the cash to pay dividends for two years even if they break even.....which is not what the current numbers indicate.
As far as projected losses go, 4th and 1st quarters are typically poor for the company.
The big excitement is this: Q1 + Q2 sales are down 20%, indicating the slide in revenues which practically killed the stock. Now Q3 is up 5%. The turnaround is confirmed to be in place. Combine that with a drop in cost of revenue from 54% last year to 51% this year, and it is easy to see what the future holds if the revenue turnaround becomes a trend......bottom line will rocket from rising sales and lower costs.
They'd have to do a bit better than breakeven to go two years, as they currently have $1.25 share cash. Interesting on the seasonality, thanks. I would have thought the first quarter would be the big one, with all the post holiday diets starting.