BUD 0.00% 0.6¢ buddy technologies ltd

Agree with your point that a good forum is open to all points of...

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    Agree with your point that a good forum is open to all points of view and to discussions around the substantiation of those views.

    As for Buddy trajectory towards breakeven....I agree it is looking extremely challenging....but it may still be premature to be so unequivocal about the fate of Ohm. Let's at least wait to see the March quarter 4C which should be released in about 6 trading days (including today).

    By Buddy breakeven, I mean the line of products/services running under the former Buddy Platform umbrella. So that is Thor SoW, Airstream royalties and Ohm (and eventually Parse, hopefully). Thor SoW is about $400k per quarter. Airstream is unknown but almost certainly negligible at this early stage. So the balance is Ohm, which by my reckoning was probably around $500-550k for the December quarter. Taking a midpoint of $525k and a 50% QonQ growth rate, will see Ohm at about $2.7m for the December quarter 2019...which in addition to Thor SoW (and ignoring possible Airstream royalties) takes us to about $3.2m for the quarter. Which may take us above breakeven, if BUD continues to achieve its QonQ 10% reduction in operating costs as flagged.

    So the upcoming 4C will be key to seeing if we are 'on track'. I would need to see Ohm at around $750-800k for the quarter, and a maintenance of the Thor SoW, giving us approx $1.2m in revenue for the quarter. Additionally, I would like to also see a 10% reduction in the opex attributable to running the Buddy Platform' business - to around $3.8m (or better). Obviously excluding any LiFX acquisition related costs. That will tell me that we are on track.

    That said....I am less hung up on achieving breakeven by end of year, than I am on seeing that the Ohm service is gaining traction that will get us there and beyond sooner rather than later. Within reason.

    All IMO and GLTA.
 
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