"Starman" Dan Doyle
Texas Astronomical Society of Dallas
Central Texas Astronomical Society
8" LX200GPS w/ST80 guidescope, Canon 350D+DSI Pro
150mm f/8 Sky Watcher Refractor
10" f/4.5 Homemade Dob RV-6 Criterion Dynascope http://www.darcstarobservatory.webs.com
Quote: The Company has incurred significant recurring losses and negative cash flows from operations which have resulted in reduced liquidity and a weakened financial position as of November 30, 2012. The Company also has endured working capital problems caused by product development delays during the past twelve months. In addition, in January 2013, the Company's largest customer, and one additional customer, notified the Company that they had unilaterally, and without prior notice, decided to indefinitely hold payment of approximately $0.6 million in accounts receivable, which will further reduce the Company's already limited liquidity. Due to these issues, the Company's management now believes substantial doubt exists about the Company's ability to continue as a going concern and that it must modify the Company's business model and operations to reduce spending to a sustainable level. Such actions could cause the Company to be unable to execute its business plan, take advantage of future opportunities, respond to competitive pressures or customer requirements. It may also cause the Company to delay, scale back or eliminate some or all of its research and development programs, seek opportunities in a strategic relationship or business combination, or to reduce or cease operations.
http://www.astrobin.com/users/budman1961/ Meade LX3 8" OTA/IEQ45 Mallincam HyperPlus Color, QHY5L-II Mono Orion Mini Finder/Guider
Quote:Please shut this down Chris.........its getting too contentious in CN regarding Meade.......Andy
"My advice is free and worth every penny!"
AP 130EDF-GT & AP Mach1
C14-XLT & AP 900GTO
Meade LS8 ACF Meade 2" Diagonal Apetura 10" Tweakers Package Meade ETX-125, ETX-90 for Solar Celestron 80mm APO PST Meade SWA - 34mm,28mm,24mm,20mm Brandon 32mm, 16mm Vernonscope 40mm Erfle 2" ES 14mm,11mm,6.7mm 8.8 Nagler 13mm T6, Pan 19mm Meade 12.4 Pl,9.7mm, 15mm SP Meade 2x Shorty Barlow Powermate 2.5x WO Bino Viewer, 20mm 66* pair Denkmier 2 Super System Meade Nebula Filters Meade 9x60 Bino Vivitar S1 8x42 Bino Canon T2i, 18-55mm, 50mm 1.8, 55-250mm
Quote:May be Costco and Walmart? Hope they can get it resolved and stay in business. Perhaps the two new comets this year will spike some new interest in the hobby and help sales efforts!
David Moody, FRAS 17.5" f/5 dob 10" f/10 SCT 5" f/8 refractor 80mm f/6 refractor 66mm f/6 refractor Plus a few others out of the rotation
Quote:It is very important. especially to those of us who have know no other brand. It was not my intention to insult anyone. in fact it was totally opposite if you read my first post.lets hope it ends in success now the the 800 issue is gone. Chris ...if you read the whole filling do you think it was the above issue that caused this?
Quote:Meade's problems didn't happen overnight and were mostly self inflicted. Their own numbers painted the pictures over the past decade. Also, Meade's problems are less related to Synta's purchase of Celestron (though that didn't help Meade's competitive position) and mostly related to their timing and conditions of business model transformations:1) into a high volume/low margin/low end telescope vendor and then, 2) reverting their focus back into low volume/high margin/high end telescopes. They operated both of these models with inadequate working capital (exacerbated by drawn out patent suit from 2002-2004 costing them around $15 million over that time period) and found themselves in the classic conundrum of making a profit while losing money (this scenario is taught in a lot of accounting texts, interestingly enough) in the first model and then showing losses while losing money with their market cap upside down to their book value (which, as a public company, reduced their funding/financing capabilities and highlighted their aging inventories and other assets).This isn't Monday morning quarterbacking... these are things that were discussed as they happened on the CN forums at length over the past several years.At its sales revenue peaks, where sales were over $100 million per year, 98% of their sales volume came from low margin/low end telescopes, whereas the other 2% came from their higher end scopes and accessories (called by Meade as the Advanced Astronomical Telescopes in their segment disclosures). That 2%, by the way, contributed around 17% of their net sales (in 2004). Their highest sales revenue peak was in 2004 with about $138 million in sales. That was also their last profitable year. (All of this information, by the way, was gleaned from their annual reports over the years. I used to follow their finances pretty closely). By 2006, they were taking some significant writedowns on the low margin inventory mostly due to tough supplier terms they had with companies like WalMart, who had liberal return policies that went back directly to the manufacturer/supplier, not WalMart. They also had a couple of major customer defaults during the decade adding to the writedowns. Since these were already thin margin items, the losses started hitting hard.R&D during this time fluctuated a lot and was held down as they spent the money on legal fees, selling costs, and warranty costs. They increased it again when they started getting out of the discount telescope business, but it was challenging as they were still taking some serious losses during this transformation, which also included selling off a lot of business lines and assets (Bresser, Simmons, et al). They wanted to get back into the mid-higher end/high margin telescope business, but that market had already changed and was crowded with other competitors vying for a shrinking market (the 2012 telescope market total was estimated by one analyst to be around $127 million, compared to over $200 million in 2002).They went from a company with over $100 million in net revenues to one with $21 million in 2012. From about 2002 on, though, the burn rate on their working capital took its toll from which they never quite recovered. Which is where they are now, with a liquidity problem.
Quote:Meade needs to come to China. They can sell themselves off to the highest bidder like Celestron did, or they can bring the company over here themselves and set up a wholly-foreign owned enterprise (WFOE). They will need to trim down quick and focus on the products which have the best chance of success in the long run. But they need to do it quick!Maybe it will turn out to be for the best like it has been for Celestron. Celestron owners must feel happy knowing that their company and its products will be around for at least another 20 years. Welcome to China, Meade! Mike Meade LX200 8" Classic LX200 10" Classics (two of them) Meade 14" GPSCelestron - none
Just out of curiosity what is it about China that would see them to prosperity? The cost of labor? Taxes? more?
World Explorer, Satellite Development, and all that...
LX850 & Astronomy blog: http://lx850.tumblr.com
Ok, equipment list…for reference purposes only!
…Missing my RV-6. Why oh why did I sell it?!?!?!?
Quote:So many great ideas from you guys that seem like no-brainers! Why don't they do any of them? If i were in there position i would be looking everywhere for inspiration & a way forward. Spacetravelerx "Andrew" , Chris Erickson & David "bicparker" Buy MEADE!I could only imagine what you three could do with all your knowledge.
Quote: .... Make scope accessories and spare parts your REAL profit center. That is what all of the automotive and appliance manufacturers do and it seems to work out well for them. I believe selling spare parts would also be a big PR-boon with serious amateurs. Being reluctant to sell spare parts is the single biggest rant I read every day on dozens of Meade forums. Meade needs those people as their extended sales force. Not likely to happen when so many of them are angry at Meade.Give up on dealer networks and go direct. Dealer networks are the past. Make every customer purchase just a couple of painless, impulsive mouse-clicks away. Make no distinctions between people in the USA and those anywhere else. Sell to everyone you can, within the bounds of whatever trade restrictions exist around the world.Offer customer support via email, web page, company forums and phone. Make it super-easy for every support contact to turn into a parts or accessory sale. ....Just my $.000000002
Quote:Great! I've bought Meade scopes and accessories since 1988 !! (8"SCT) and 2006 (12" SCT)....Would love to throw down for a 16' LX600 but the Silence from Meade is not encouraging ....
Quote:...Something else that causes me to be nervous by proxy is what happens to dealers. Some of these guys will get hit with warranty returns and if Meade arent around to repair/replace then the dealer is going to have to cough up the cash. Given the narrow margins in astro Meade going down might well cause some dealers to go with them...
Quote:How would that work? Would that mean that Meade the company would no longer exist, but some form of the Meade/Coronado brands/products get marketed by someone else?
Quote:Well its probably different in the US. Here in the UK we have the 'Sale of Goods Act' basically it says ...1/ Your contract is with your shop - so the shop you buy from is responsible if things dont work out - they cant opt out by saying 'well the manufacturer let us down etc'2/ Goods must be of reasonable quality, must work as advertised and must be of reasonable durability.So if you buy a paper cup the durability test is differnt from if you bought for instance a car.The bottom line is if you bought a Meade scope from ABC Astro Shop and the scope breaks down the shop carries the responsibility for putting things right. Obviously if the manufacturer has gone bust the only thing the shop can do is hand you back your money. But that means a dealer takes in a scope he cant resell and hands the cash back - its the same situation as if the dealer just ordered up a dead scope and paid money for it. This kind of law is very common in Europe so if a manufacturer goes down its not entirely unknown that the retail chain selling it goes bust as well.