Ann: Xped to Acquire Healthcare Technology Company-XPE.AX, page-77

My take is relatively simple. Good acquisition but what is the actual revenue flow right now in actual $ terms and how it translates to profit. If look at milestone 1, for example, says need to get $3 million revenue within 12 months from 1 July 2016, so implies revenue currently less than $3 million. What is then missing is what is the profit level - now and if the $3 million revenue target is met. Same same for milestone 2 and 3. This is not the revenue/profit buster we are hoping for - that lies in more signed contracts and getting a chippie on board IMO. I am also hoping the market is not viewing this acquisition as a distraction from the main game, i.e. that is the market thinks we are expanding too fast before locking up core business (signed contracts that justify a signed chippie arrangement).

The interesting thing with this acquisition is not just Solutions Forest but the other technology this entity holds - November: JCW wins tender to to develop a track and trace system for the SES and wins Minda tender to develop and deliver a state of the art assistive technology solution to each of the houses and apartments ; April 2015: wins work to aid in developing the Woodville Smart Living Apartments for persons with disabilities. I recall on the weekend a thread around XPE technology been used in housing developments - JCW appears to be in this type of market as well in addition to what Solutions Forrest did prior to been acquired by JCW. The question the market might be asking with this transaction is are we spreading our wings too far before locking in core business and what is the profit associated with this acquisition.
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