I unfortunately don't know any more than what was already said...

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cdchi1

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15/10/19

18:04

Post #: 40894105
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Originally posted by droache: ↑

Thanks for the reply and to the other posters who replied too.

I think that's the better scenario that I was hoping for but that raises another question. If the licensees are still purchasing the K-TIG equipment, why was there such a drop in revenue last financial year?

The Prospectus said that because of the shift to the WaaS business model, the revenue was lower but the cost of goods sold was reasonably close to the previous years, usually meaning tighter margins.

So either 1. Were they selling the equipment at a discounted price as part of a licensing package, like when you buy a printer for $80 and the ink cost a fortune. (they can't have done this though because they just announced their first WaaS customer)

or 2. Did they stop selling equipment to customers during the transition of their business model? (This doesn't make sense if the cost of goods sold was the same as previous years though)

If anyone could shed some light, this would be much appreciated.

Thanks

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I unfortunately don't know any more than what was already said by the company as you pointed out. If there is additional specifics, unless someone here knows, you'd have to ask the company directly. I'd suggest however that perhaps GE's involvement in 'trialling' the efficacy of the product probably had something to do with the end june 18 revenue figure, a paid trial would increase revenue more without a corresponding increase in cost of sales. Just a hunch though.

KTG Price at posting: 34.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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