Friday, July 21, 2006 9:55:15 AM
KlausVT, you are correct on the numbers to obtain breakeven. I don't have time to go back and get the calculations I did in late Apr/early May after the 10Q came out. I believe back then I calculated if the expenses stayed the same breakeven would be around 32000-34000 subs. I did not factor in an increase of expenses that I just provided. The wild card in required sub numbers to breakeven will be the recent addition of books, audio books, and now downloads. The more of those products sold will reduce the amount of subs required for breakeven. The upcoming 10Q will be interesting because of the expenses that undoubtedly occurred ramping up for the expanded CC rollout. Keep in mind that we still have more DCs and inventory to add this quarter and I anticipate increased advertising towards the end of this quarter and continuing into next in preparation for the holiday's. On a side note I am a little concerned over the Alexa web traffic numbers. We were on an uptrend in numbers Mar/April/early May time then around the time of the last Webcast we had a big sell off and a corresponding drop in website traffic. I am not sure what to make of that except to speculate that many people were pissed off at GZFX and cancelled the subscription while selling shares. The other scenario is that there was a peek during that time because the website was new and there were a lot of people checking it out; now that it is not so new less traffic. Last scenario is this also corresponds with the time that the service vastly improved and required less traffic for customer service coupled with the websites ability to hold a large quantity of titles in the queue. Sorry for being so long winded; I did say my time was short this morning didn't I?
Don't buy or sell based on anything you see on this thread...especially anything posted by me....Do your own DD; make your own decisions....
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