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Non-Tech : Any info about Iomega (IOM)?
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To: KiddStock who wrote (50259)3/16/1998 6:03:00 PM
From: Bill Lin   of 58324
 
Hey guys,
if you want to figure out how much revenue it takes to break even, its simple.

If the gross margin is 30%, and you assume that
SGA = $110mm, and r&D is $25mm,
then take the sum, $135mm
and divide by your gross margin

you get $450mm revenues needed to break even.

So, unless you project that the current run rate of sales of $360mm will increase 25% in next 2 weeks (um...its more than 25%, 2 weeks of 12 weeks is 1/6, so 25%/1/6 = 150%...) unless you think that sales will increase 150% in next 2 weeks, then break even is very unlikely.

Your only hope is to buy iomega products.

like crazy.

BL
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