Re: Avid Electronics Corporation....jef
posted on
May 15, 2008 07:01AM
It's a seldom used board because the posting has been limited, if all off topic issues were posted there, it would become more popular.
In spite of the increase in fuel cost, the number of passengers and departures as well as the passenger miles is expected to increase this year as it has for several years.
The fuel price has a greater impact on the airline profitability, it's not from a lack of passengers, and the result may limit the acquisition of new systems including the IFE products.
A few opinions as to the other topics you have commented on.
I don't expect to see Q to Q revenue increases over the next 12 to 18 months. We may see some good quarters, but it will be difficult to achieve a positive trend as compared to the past 24 months. As I have stated before, we need approximately 10-13 million revenue dollars, depending on the ratio of direct to distributor sales to achieve a breakeven situation.
As to breakeven, based on the above comments and past financial results, it's highly unlikely we will attain that goal during the next 18 months, unless we generate income from a patent settlement. I expect some added dilution from new shares issued or higher epenses from new funding which in the long run may result in added dilution from conversion loan elements.