BigRed the US dolloar has to play a healthy part in 3rd qtr and...

BigRed the US dolloar has to play a healthy part in 3rd qtr and even more so in 4th qtr. On 8/8/08 (lucky numbers for the Chinese) the company said even though they had revenue of only $A4.85m that they were confident of making the $A20m annual figure set and yep that was just at the time when the $US was about to make its charge.

So straight maths tells us they still had about $A15.15m in revenue to get for the FY. Say a 40% / 60% split in terms of 3rd / 4th qtr revenue would give us $A6m for 3rd qtr.

However 2 things have happened since then.
1) The AUD has dropped from 87c around that time to an average of say 81c to the end of the quarter......(Note: 4th quarter to be an awesome result based on exchange rates)
2) The funding BRT announced on the 6/8/08 did not come through in full. How much this has impacted the supply chain can only be guessed?????

I say they may well cancel each other out and am going for a figure of $A6m for the 3rd qtr.

For the 4th if the above is around the mark and they get there finance/cashflow sorted + an average exchange rate of say 72c our remaining $A9m could turn into close to $A11m..........but thats getting a bit ahead of myself!!!

SLE