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Re: xanadu post# 178617

Thursday, 06/15/2006 3:49:54 PM

Thursday, June 15, 2006 3:49:54 PM

Post# of 286385
That was me. It is hard to read that analysis and come away with anything. The biggest factor is expenses. I'm really looking forward to the 2nd Q as I think we will have a really good picture to project from. Having last year in there really gives us no good info as it was a different company at that time.

I would really like to see some expenses decreasing. Especially consulting. I'm sure advertising will increase as well as cost of revenues. Like I said before I have prepared an analysis based solely on the 1st Q and the numbers don't look pretty. The main reason is expenses per subscriber are sky high. So the big question in Q2 is are we starting to leverage off a larger subscriber base and therefore expenses per subscriber decreases or are we still spending and the cost per subscriber increases.

The only way NFLX became profitable is once they got to a level where they stopped spending. I'm hoping we can get to that level in 2007. If we get AAFES, Target, and close to breakeven this year, 2007 will be a great year for GZFX.

Rocket talk will be in full effect.