You might be right, but their overheads aren't that high. They get a product to market, start to show revenue - heck, maybe they could even qualify for a loan. They really don't need a lot of money to break even...... That's the beauty of software - very high ROC employed. Look at carsales - In the year to June 2012, earnings before interest and tax margins were 53%. And the return on capital was over 100%.
I'm not sure how much weight to apply to their discussions with Walgreens and such; it's quite possible they have an MOU in place or some such. Even if it's not, they really don't need to sell many to break even. And having lived there, I believe in the power of America... It's a remarkably big country.
I think one more CR. As Mak said - next quarterly will be interesting......
ISN Price at posting:
7.2¢ Sentiment: None Disclosure: Held
