I agree - much better to sell 10,000 units @ $5,000 each through a distributor, than to directly sell 1000 at $6,000 each. This is why the subject of lower margins is a moot point unless we know exactly how much sales are increased by through a distributor - which is something we will probably never know.
When I wrote "As these sales were through distributors, I doubt there is much in the way of costs attached", what I should have written is "As these sales are through distributors, there will be a reduction for TZ in direct and indirect costs".
The end effect should be TZ running a tighter ship through lower SG&A expenses, a reduction of cashflow risk and more flexibility to operate and grow the business.
In regards to FY2011, I do expect it to be a major improvement on the prior year where TZ had numerous one-off charges which should not recur. TZ has made a tremendous start to FY2012, and that's what I am looking forward to continuing.
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