Yakov and TG,
I put this out a couple days ago on the impact a 10-15% revenue reduction would have on earnings:
<<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.>>
This does also hold true that if they increase their revenues sequentially and by only small percentages, the earnings increase dramatically. They shouldn't have much trouble making and possibly shattering the new estimates if Asia starts to rebound in the 2nd half of the year. |
