Steve Smith

Syntax-Brillian: A Classic Bottom

Yes ... that is the general perception. However, this point is moot as to the overall picture regarding BRLC.

Personally, I think your revenue numbers and margin numbers are optimistic, but I'm not going to quibble over them.

However, I think your SG&A and R&D numbers are way too low ... probably 50% too low, which makes a huge difference in your EPS numbers.

Also, I disagree with how you characterized the difference between the new model and the old model. In the past, the Chinese revenues accounted for more than half of gross profits and required very little in terms of SG&A expenses. Under the new model, however, monies being received from China will barely cover the proposed R&D expenses. To me, that is HUGE and an investor need only look at what the stock price has done since this new royalty model was announced in early November to see what the market thinks of it.