Kyle Lussier, who will be shortly joining this thread (he can't post yet) just emailed me the following. He wanted this posted for public consumption. Welcome Kyle and thank you...
- Digital just dropped their own video servers and
adopted as their servers for the future Oracle's
video server, which are made in collaboration with
NUKO. (Probably made primarily by NUKO). I got this
in a Pointcast news release earlier last week. (Sorry
I didn't post it when it came out, didn't matter much).
- I talked to Donna Coward ((804)643-5500), (an analyst BK
recommended to me that follows NUKO) she told me the
following things:
* She estimates $5-$8 mill in revenue on Thursday.
[I thought this was very positive news, if she is right.]
* She estimates a loss of $.05 per share this quarter
* NUKO is splitting up it's primary two activities to
focus marketing in the two channels. The split is into
Hardware and Software (in case you use someone elses equipment).
[Very good move, IMO, more opportunities from component
companies].
* She estimates $10 mill in revenue for Q3.
[BREAK-OUT!]
* She says monthly expenses were at $2 million per month.
* She says monthly expenses have been reduced to $800k per month.
* She says monthly expenses will be at $700k per month soon.
* She says expenses have been reduced and will be reduced
further by eliminating the amount of "manufacturing" done
in-house and off-loading some of it to companies. She said
this will probably reduce margins but the effect on expenses
is better than the margins of doing this manufacturing.
* She says the cash burn-rate will leave them broke in ~6 months
if they can't reach profitability. [She hadn't adjusted for the
new investment yet, I don't believe.]
* She said she heard that BK's 50,000 shares he sold were a result
of the margin call he received from purchasing shares earlier in
the year at the higher price. This combined with a 50% reduced
salary caused the need for more available cash.
* Is $6 mill in revenue is reached this quarter, they will break
even. --> Break-out on Thursday.
My comments:
This painted a very rosy picture of NUKO, and was news I was definitely
looking to hear. If her assessments are true however, I doubt BK would
recommend an analyst who didn't like the company.
Nevertheless, I wanted to provide this info and my references.
Cheers!
Kyle Lussier
Graphics Engineer |
