Prins,

The business model annual revenue of $350m is the bare minimum for them to be profitable if they achieve cost savings and GMs. However, I think the more realistic revenue run rate will be way more than $350m.

With a target of just under 2000 employees, UTs $350m model revenue would still be way under industry standards. Throw in their lower margins and the fact their employee base is in China and you can see that there is STILL significant excess capacity in their employee count. Now, the company's history is they are always behind but Blackmore also has to factor in potential growth and you have the current situation where:

1. Blackmore is not going to stick his neck out even though $350m is way too low.
2. If nothing pans out, they will have to cut against next year and another round for the board to consider selling as it gets too low to support their range of products.


So, once Blackmore secures additional contracts this and next quarter which will make up 70% or more of 2010 revenues, then he will be more upbeat.

As for panic, this company doesn't panic...Thats actually been the problem. The PRs just came out now since it happened that Barry took over amidst the restructuring and pushed it through. Remember, this is a company that just spits out whatever wins they have during the cc and then nothing.