From the conference call on FridayExcerpts from the conf. call yesterday, which had a LOT of juicy info in it:
[Daniel Shahrabani asks about the breakeven point for profitability:]
I think initially the goal was to hit around $30 million to $40 million of sales [....]
Marc Seelenfreund:
We don't need to sell 30,000 units or $30 million to be profitable, okay. We only have to sell around 3,000 units a quarter [just 12,000 per year], and then we're really turning the floor to really cash flow positive.
Just to give you an idea, we're EBITDA for sure, okay. And for now we're on a run rate of anywhere between, I want to say between 1,600 to 2,000 units a quarter, that's where we are now. And our goal is to get the 3,000 units, at least by Q3 [implication: if not sooner]. In other words, we think that it's very, very achievable certainly with the pipeline that we have right now.
Like Glenn said, we have about 20,000 units that are in trials right now. So, we think it's very realistic for us to be able to sell at least 3,000 units a quarter, and then grow from there to 4,000, 5,000, 6,000 and 10,000 units a quarter. And that's very realistic, considering that we're going after a market that has over 20 million commercial vehicles, and we're the only one that's doing this, right.
So then like I mentioned before, just in the yellow school market, just that school bus market, just that vertical, we're now going with AT&T after over 500,000 buses [earlier Marc stated "there are 560,000 yellow school buses just in the United States. The majority of them are using two-way radio systems"]. And that was the reason that we put that video together with them, okay. So, it's not that we [need to] sell $30 million [for breakeven]; we only have to sell --just on a quarterly basis, you understand-- around $5 million a quarter and we will already be profitable, also because our gross margins are so much higher now than compared to what they were in the past.