I agree that $84m in revenue in FY20 is a possibility. As for...

Originallypostedbykonameh

Assumingtheysell2.8millionbulbsinCY2020andrevenueperbulbisaround$30(basedonpreviousquarters),thentheirrevenueinCY2020willbearound$84millions.Assumingaprofitmarginof30%asstatedinthecompany'spreviousannouncement,thentheywillmakearound$25millionsofprofit.Thatwillbemorethanenoughtopayforstaffsandcorp.costs,andwillpotentiallyresultinaround$8millionsofnetprofitbeforetax.Nowthatisa10%ROIgiventoday'sshareprice.Butofcourse,weneedtofactorintherisksaswell.

I agree that $84m in revenue in FY20 is a possibility. As for profits, it also depends on how much expenses increase. I think Lifx's expenses could increase by up to 30%. Also interest and fees on the LOC and the amount owing to the vendor could be approximately $4m.

If they do get to $84m in revenue and close to break even hopefully Mr Market will like it. We will have to wait until the Dec qtr 2019 results are released until we have any idea.