$90M+ moved from A/R to Inventory.
One must wonder about the aging of these assets
and their current value, as opposed to the value
when they were sold to China.
On the positive side, BRLC seems to sell every HDTV
they make, so additional inventory shouldn't last
too much longer. It's just that they might have to
discount them, since the units are 'older' technology.
Could be a buying opportunity.
When China is ready for these units, will they choose
Olevia again?
From thestreet.com :
<<Also falling was Tempe, Ariz.-based Syntax-Brillian BRLC, a maker of high-definition TVs. The company announced a delay of its fiscal second-quarter 2008 earnings statement, saying it needs additional time to review accounting treatment related to its tooling deposits. It had been slated to report today, and no new date has yet been set. In addition, Syntax-Brillian reported that, thanks to a delay in the building of 2008 Beijing Olympic facilities, a number of TVs sold to distributors in China had not been deployed, causing the company to repurchase them. The repurchase results in a $99 million reduction in accounts receivable from customers in China. Shares lost 14.5% to $1.94. >>
thestreet.com
Days like today are hard to take. One must ponder if BRLC
is going to make it, be bought, or go BK.
Woody |
