re: a superstar in the making, page-26

re: a superstar in the making it&e (ITE).

Hi everone... and also in response ...and ....Hi to you too... AA,

To be brutally frank, my math would be something like this.....

As per (ITE guidance) --7 New Sales Contracts... at conservatively say 4 new Contracts at Tier One = 4 times $AUD -- $ 6 Millions times 4 = $ 24 Millions ....

.... plus ( + ) .... then ...say 3 Contracts-- of the New Slightly “lighter Razor/Monarque Application Sales” times # say, $3.5 Millions each.... = 10.5 Millions, and then add, say $1--$2 Millions – let us be conservative and stay at only $1 Millions-- Millions for miscellaneous new contracts-- —like the Queensland Treasury Corporation already announced Sale....

That is a total of: $34.5 Millions.— which is, for the new estiamted Sales component.... of (ITE) Sales Revenues... .

.... so .... Now we get to Recurring Maintenance Sales Revenues--- last year the (ITE) $$$-- figure was around $9 millions..

And had increased 37% from the previous year.

If it&e(ITE) –as is likely-- Do that earnings growth in this sector of their operations again in this next period-- — by 37% --- then-- what figure do you then get...???--

>>-- Answer is:-- an additional : $ AUD-- $ 12.33 millions.... to Add to the other figure of $34.5 milions-- On the Top Revenue Line...

So we have:

$12.33 millions-- (maintenance/service agreement revenue)-- + $34.5 Millions (new sales) = ..........$46. 88 millions.

However, I will discount that (maintenance/service agreement revenue)figure—(by approx 2 millions discounted) for Recurring Service Maintenance Revenue to say: $10.5 Millions.

So the Top Line Sales Revenue line—estimated by me, for (ITE) going Forward—is: AUD $44.5 Millions.

Last year overall (ITE) Running Costs were trending Down—and that is because “the tail”-- earn out costs.... being paid previously, to Next Set -- are increasingly becoming ....smaller... or being totally paid out....

This of course is good. .. and reduces costs...

The ‘break even costs last year were about .... # AUD $ 15 millons.

So let us say this next Period, they are inexplicably trending up — and are as, high as .... $ AUD 17.5 Millions.

That gives us a Bottom Line figure of: $27 millions... NPAT .

Okay.... let us now take -- ONLY --- 75% of that number—still equals -- $20.25 Millions NPAT... (And their was, remember-- already a lot of discounting/tolerance/cushion-- in my original in-putted numbers)...

...Why however; is this therefore—a NPAT-- net ..earnings figure, which I quote--and not a EBITA-- figure ?


Well, there are about ...$ 40 Millions in tax credits on the (ITE) balance sheet—enough for a further...## approx ...2.5 taxable years...

But of course the $ AUD 27.5 Millions – NPAT.. .. .or discounted $AUD 20.75 millions-- is not really the –imo—the Primary Core-- Issue.....imo....

Although the excellent --$$ NPAT number-- I estimate-- does, I suppose, demonstrate.... imo—the massive Margin of Safety—and almost certain—imo— significant and higher than normal ... Up Side...!

What is really...

.... the number one......

" issue for astute investors; " --

is, imo, what this figure "represent " and "signifies" .... GOING FORWARD again—

and again—ie: that it will provide the market with the necessary “proof” of the intrinsic (ITE) it&e proprietary suite of product’s –very sustainable and “high marginal utility” and sustainable Barriers To Entry— all making the Competitive Case more convincing again and again...

Let me put it another way—AA --- it is the – Inimitability Factor-- that this will...errrr.. “finally” ...-- provide, imo, to ....the broader market—and that this is really therefore only likely to be the very outset and beginning ..... of a very strong intrinsically undervalued, growth story....

Kindest Regards,

Robbo [:)]

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Kindest Regards,

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