I was cutting and pasting another poster's points there. The 10q is out, it looks like Stocklemon screwed up:
1) Confirmed what was said on the CC - Rebates down significantly: only 4.3M vs. 13.4M last year. And, perhaps more significantly, the 18% guarantee has been eliminated. This should put to bed Stocklemon.com's stupid argument:
For the three months ended September 30, 2006 and 2005, Kolin agreed to grant us additional monthly lump sum rebates for price protection of $4.3 million and $13.4 million, respectively, representing 4.0% and 21.6% of actual purchases from Kolin, respectively, which were credited to cost of sales in the period received as these price protection grants related to inventory purchased from Kolin that had been sold to our customers during the respective periods. In April 2005, we entered into an agreement whereby Kolin agreed that in no event shall the amount of the price protection to be issued by Kolin to us for any calendar month be less than 18% of the amount invoiced by us to our customers for such calendar month. On July 1, 2006 the agreement was amended to remove the guaranteed 18% price protection and to base price protection upon market conditions. We record price protection received as a reduction in the value of inventory purchased from Kolin and a corresponding reduction in the accounts payable balance to Kolin. As of September 30, 2006, the amount of reduction in the value of inventory purchased from Kolin and the corresponding reduction in accounts payable to Kolin was $877,000.
2) Furthermore, there are basically no sales in Europe yet (only $5k). This will change with the Vivitar acquisition, as the retail connections there will help the LCD TV business establish a foothold. |
