Can one of you who's much smarter than myself provide me with a break-even analysis for next quarter.
This is what i'm coming up with:
My 3 assumptions – operating expenses will remain consistent, gross margin will return to 27% as Cue noted in the last earnings conference (24% margins were due mostly to Costco sales which are being phased out), and total revenue will be 4.2 Million for the quarter. This assumption is based on the fact that 2nd quarter Revenues for 2012 was 5.257 Million but I’m assuming a 20% decrease which is in line with the 1st quarter for 2013.
Using the above figures I get a net loss of 101k for the quarter (a solid improvement from -399k for the first quarter). Revenue needed to break even would be 4.58 million, so they need to increase revenue by 375k from the anticipated 4.2 milliion. Am I missing anything? Am I in the ballpark? …Constructive criticism welcomed.
I think you nailed the huge 2nd quarter. They expect 2nd quarter to be huge and $4.2MM would be huge. The problem is they will never make $20MM in revenue to break-even... late 3rd quarter early 4th quarter will be the time when JSDA has to finally say goodbye.
Operating expenses will not remain constant with the first quarter,but will be significantly less than the 2 million in last years second quarter.
SGA will rise going into the busy season, all you have to do is look at head count.Last November the company had cut to 24 people. They are currently up to 29 and looking to fill a 30th.Add to that the normal promotional expense increases going into the busy season and the sga should not be flat wit the first quarter.