Couple thoughts...
First, they haven't announced earnings date yet, so it is almost certain to not be in 12 days as I believe they need to give 2 week notice, so that is definitely a rumor.
As for a drop in sales... the bears are already screaming no sales, no product, so how can sales drop if they claim there were none to begin with?
Royalty revenue is linked to MSFT's HL2 sales, and possibly to IVAS as well (however that is less certain as management have indicated that the license was for a single assembly for a single product meaning IVAS very well could be under a different and hopefully more lucrative agreement). Microsoft HL2 sales continue to look robust, so I would imagine royalty revenue to be in the same ballpark.
I do expect them to post a larger loss per share as their expenses have gone up -- hiring additional staff, cost of sample units, commitments for manufacturing, etc. This is not unusual before revenue goes up. As the saying goes -- It costs money to make money. I'm not aware of any small company that can produce and sell product without incurring costs associated with production and sales. Larger companies like Apple can clearly demand better terms and string their suppliers along until they have sales to pay the production costs, but in the real world we have to buy materials and pay for services up front at least in part.
Do you think these rumors you cite could be the last desperate attempts by shorts to influence the share price so they can cut their losses ahead of the looming sales and revenue later this fall?
