Cap's figure of 15-20 mil revenue per year to break even is quite reasonable. That's roughly what's been calculated in the past as a possible target. 20% margin could be a pessimistic/optimistic assumption depending on where you sit but still within a reasonable range.
Cash flow break even though is a different story and not as easy to achieve for a growing company. Cash receipts will always lag while your cash out the door will be increasing to supply ever increasing orders.
So I would think it unlikely that we'd be cash flow positive this quarter and would like to see Cap where Alexium said they'd be cash flow postive this quarter? I thought the target was Q4 this calender year, but happy to be wrong?
In the end Alexium actually did achieve a run rate before that would generate that revenue target, that was back when the share price was closer to $1. Here's hoping if they can actually achieve that again based on better business practices that they'll actually return to those prices.
AJX Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
