Mang:
Hopefully conservative guidance like the last two reports! My model predicts $550 to $570 million for Q2, have to dredge through the details of Q1 and listen to the CC replay (missed the CC and replay isn't up yet) to get a better idea of revenue/product mix this Q and next Q's guidance. Did they break out devices, ASP's, licensing, content & access separately, like last Q? Anything on revenue vs product mix?
One thing that jumped out of the balance sheet was the increase in accounts receivable - $221.357 million at Q1 end vs $122.276 million at the end of Q4. That's over 80% more in $$ - and last Q's A/R's equated to around 375,000 units in the distribution channel, whereas this Q's A/R's equate to around 812,000 units in the channel, and that's more than double. In comparison, units shipped went up from 1.1 million to 1.5 million, a 36% increase. I'd be happier if the apparent increase in distribution channel inventory was more in line with the increase in units shipped. When they get way out of whack, the channel gets stuffed and has to be brought back into balance with unit sell through at some point.
Last Q Bruner said that A/R represented 31 days sales outstanding, 35% of the Q's revenues; this Q it's up to 50 days, 55 days of the Q's revenues. With the M100 beginning shipping on 8/7, this may just be the initial channel inventory build up, but the street doesn't like this level of A/R, neither do I. Something to be watched, particularly next Q. Be interesting to see what Bruner said about that or if she was questioned about it.
David T. |
