Outlook For a Return To Profitability / Significant Improvement in Performance for the 4th qtr:
Outlook for a Return To Profitability:
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Assumptions:
1) Gross Profit Margin same as last qtr: 66%
* Using this assumption, TSSW would have to report revenues of $2,524,558
Example: Company lost .09 or $713,660 last qtr
.66 times X = $713,660
X = $1,081,303.03 in additional revenues
Total Needed = $1,443,225 + $1,081,303 = $ $2,524,558
2) Revenue Projections for PC-Cillin 3 and Checkit Version 5
a. PC-Cillin 3
( 9,000 * 12 * $39.95 ) = $2.157 million
** Assumptions **
(1) Retail Stores at 9,000
(2) Company averages one sale per week per store
(3) Company receives only 50% of the revenue generated per product
b. Checkit Version 5
( 6,000 * 6 * $42.00 ) = $ 756,000
** Assumptions **
(1) Retail Stores at 6,000
(2) Company avgs one sale a week
(3) Company receives only 50% of the revenue generated per product
c. No revenue assumed for TSSW's other products
(1) Checkit Diagnostic
(2) Fast Move
* Under these assumptionsm TSSW would have to average 1 sale a week per these two products to achieve profitability. I believe the company will recieve about 75% of the revenue per product versus the 50% used above. A Checkit Pro sale would consist of both a PC-Cillin 3 and Checkit Version 5 sales. Sales of this product have been very good as demonstrated by its 10th place Oct ranking in PC Data's top unit sales for its category. This product sales for about $95.00
First Call has an estimate of a loss of .06 for the 4th qtr, Wayde another member on this thread has an estimate of a loss of .05 versus the 3rd qtr's loss of .09.
First Call has an estimate of a profit of .13 for the next year.
I think the company will show significant improvement in the 4th qtr and will beat these estimates. Lets see how the last two weeks of the year turned out for TSSW.
The First Qtr should be an even better qtr for TSSW as they will have a full qtr of Checkit Version 5 and Checkit Pro sales versus the 6 weeks of sales in the 4th qtr.
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