Via themicrocapspeculator.blogspot.com:
I didn't plan on updating my views on Handheld Entertainment (ZVUE) (articles) until after tomorrow's conference call, but there appears to be a lot of interest, so here goes. In a nutshell, I'm still skeptical. I don't see a viable business model for either the hardware or content business. Today's announced acquisition of Putfile does not change anything. ZVUE needs to start generating cash flow, not eyeballs. Before listening to this conference call, I encourage everyone to read the transcript of the November call. CEO Jeff Oscodar set some specific goals that should give us a clear indication of the company's progress. I'm going to focus on these areas:
ZVUE 200/250 sales and margins: last November, management told us that they expect minimum sales of 50,000 units within 12 months (by mid-November 2007), at a gross margin of 18%. Figure that ZVUE is on track if it cleared 27-30,000 by now at those margins. With its problems delivering units ahead of the critical holiday season, I'd say this is a long shot....
$3.65 (02/15/07)
