"...with related day sales outstanding of 55.." Is this A/R?
55 days would cover December and January. December should have been a good month.
Everyone has been saying that just some news, some clarity would raise the share price, but of course it is already well above what it was a few weeks ago.
According to the price movement today, and maybe last week, some people think this good news.
"The Company estimates that its quarterly revenue will range between $65 million to $85 million in each quarter for the second and third fiscal quarters of 2013. This range takes into effect the impacts of the reclassification of certain customer costs from operating expenses to revenue, the significant reduction of channel inventory, the timing of revenue recognition, and the levels of reserves for product returns."
"The Company estimates that inventory charges primarily due to product discontinuance and market prices will be approximately $15 million in the second fiscal quarter and approximately $30 million in the third fiscal quarter"
Avg 75m per Q with a loss of 15m in Q2 and 30m in Q3.
Q2 should have been 90m
Q3 should have been 105m
"moving forward there will be a new revenue baseline which will be lower than previous reported revenues due to the impact of the Company's refined focus towards the mainstream and higher-end consumer SSD products"
Revenue reported in Q1'13 was $113.6 million so I am assuming the new low revenue baseline would be at least 100m no? I would expect Q4 revenue to be higher considering it was Christmas time and sales were up.
Good is relative. They definitely need some source of additional financing soon. At the end of December cash is down to just $9 million while accounts receivables dropped to $35 million. They have the $7 million of debt from the Wells Fargo line of credit and $30 million of accounts payable.
Not entirely unexpected. But at least Schmitt claims they should be profitable sometime in fiscal 2014 (between March 2013 to Feb 2014).
Agreed, we already knew that revenue was going to be low.. that was a little lower than I had hoped however.
I bet that press release was to try to get some investors to bite on a deal for capital infusion. R.S. would have to release some financial info in order to get the capital he needs to stay alive. We only have 2 million too our name. :/ 9 mil cash on hand and 7 Mil debt. They running out of cash faster than I thought.
R.S. said it would be easy to raise some capital. I guess we just have to trust him.
What is important is the fact that they did not give us any revenue numbers for Q4. That was Xmas, the big quarter sales, and we had just released vector right before Q4. I bet we see alot better numbers for Q4. It won't get any worse than those numbers.