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CRS Electronics Inc V.LED



TSXV:LED - Post by User

Post by mrmoribundon May 03, 2013 1:44pm
178 Views
Post# 21335917

It gets worse & worse

It gets worse & worse

Just spent some time with the MD&A. What a horror. For Q4 their retail LED sales fell 52% year-over-year to $73,700. So that will be the Eveready sales through Canadian Tire. Should hardly be a surprise. As I've said all along, all you need to do is go see the Philips and Cree LED displays in Home Depot.

You think that's bad? Get this. Under the agreement with Eveready, CRS will owe "Minimum Guaranteed Royalty" payments to Eveready that will grow sharply through 2015, as follows:

2013 - $592,000

2014 - $756,000

2015 - $836,000

Jennifer, that's going to be your money. And I can assure you, Eveready won't care where it comes from. They will just want it. That whole relationship is quickly heading toward an ugly and expensive ending.

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