Ann: Revenue Guidance Update and CEO Appointment, page-59

usd $5.4 mill revenues at 55% gross margins = $2.97 mill gross profit ie AFTER manufacturing and operating costs. Take out forecast fixed costs for 2nd quarter (stated in the sept quarterly ann) of USD $2.85 mill and you are left with +ve c/f of $120k. The key point here is whether the management were also being loose with the forecast fixed costs back in the Sept Quarterly announcement. These, one would have thought, would be much easier to control and predict at the time of publishing. It'll be interesting to see come the December quarterly announcement.