Hi Bear, they have an enormous amount of deferred revenue ($155 million at present). Here’s a little quote from Bert which helps explain it:
Last quarter saw revenues plus the net change in deferred revenues of $71 million, with adj expenses of $88 million and depreciation of $2 million. Thus, the calculated adj EBITDA was a negative $15 million, an improvement of $14 million from the June period.
The company firmly predicted another $15 million improvement this quarter, reaching EBITDA breakeven.
I hope that helps. To really understand it all, read bert’s article.
Saul