$3 Million monthly revenue by March 2003?
If Collier expects to be at a profitable rate by the end of the current fiscal year (March 2003), and their branded products have a 20% gross margin, then I would expect the following rough estimate of monthly revenue rate by then. Let BPR = branded product revenue, R = royalties from e-Digital inside OEM products, E = non-recurring engineering-fee income. Expenses would be similar to the current monthly burn rate (admin and R&D) of $500K plus any new marketing expenses (M). I would guess that E + R would be offset by M. That would leave a simple equation of .2 BPR = $500K or BPR = $2.5M. If we add in R and E, we might get up to $3M total monthly revenue rate by March 2003 to break even. Anyone think this is close?
