I am not saying this is going to be the case, but I think there is a reasonable possibility that Ampex could report positive earnings BEFORE interest. In other words, an operating profit Before interest and taxes. Here's my rough cut.
Assume 3,000 in royalty income revenues
and 900k in internet revenues
and assume operating expenses annually of 14 million,,,10 for inextv and 4 for other.
The components of operating expenses are:
Intellectual property costs...these are usually de minimis, so I assume 500k expended at 25% per quarter.
internet video programming and site development..we know most of the site development is already expensed. This is the variable item and I assume they increase programming spending as demand increases. I assume 6500 annual spent at a rate of 10% in q1, 20% in q2, 30% in q3, and 40% in q4.
Then R and D and Selling and Adm all spent at a rate of 25% per quarter.
Anyway, if royalty and internet rev come in at 3,900, then using my operating expenses for the first quarter, I come up with a 1.4 million dollar operating profit.
We shall soon see. |
