If CYMI's revenue is down 10-15%, this would be a reduction of $5,900,000 to $8,850,000 in revenues, and at a 40% gross profit margin, this translates to between $2,360,000 and $3,540,000 in margin, which unfortunately filters all the way through to the bottom line. Divide these numbers by 30,000,000 shares and you get a quarterly reduction of 8 to 12 cents. Add on the additional expansion expenses they're going through and that's where they're coming up with the 10 to 15 cents in earnings reduction.
I wish the correction was true but with a reduction of 10-15% in revenues, there's no way their earnings only go down 10-15% |
