If they had achieved their 40% GPM then it would've been cashflow positive. Currently seems to be at 30%. Not sure if that could be improved anymore so, my guess is they will need more business to break even.
My guess is annual revenues of $24m to be breaking even after corporate costs. Difficult thing is the shipping costs. If the customer is far, then shipping will take more margins away. Hopefully few more wins, then it should be breakeven. But then more business requires more capex to increase plant capacity, so probably not.. tough one this one
CG1 Price at posting:
29.0¢ Sentiment: None Disclosure: Held
