Ann: Quarterly Activities and Cashflow Report, page-154

In the Q&A, PO mentions they expected 280k revenue for the Oct-Dec quarterly based on near term prospects. Obviously this had to do with those imminent deals that never came, which left us with 65k.

So 280k - 65k = 215k expected revenue that was never accounted for. If we assume since then they have been booking up more potential customers then hopefully there's a lot of revenue coming!

In the JMP announcement, it says
"This agreement with JMP will assist Norwood in progressing additional US-based Corona Compliance deals currently in its sales pipeline, in addition to providing an important proof point for potential US-based channel partners. "

So hopefully we see some results from the US sales Pipeline soon too.


Let me quote the Q&A
"Estimated to be around a $2mil annual recurring revenue... They are managing 26,000 mobile phones... There's not guarantee obviously that we will get the deal but the deal we are currently discussing is us substituting a double digit percentage of these mobile phones with a virtual phone service. The idea of BYOD comes from the CEO downwards and in fact we've been dealing with the CEO, the CIO, their head of voice networks, the number-two guy of voice networks. They've gone through bench testing of this deal of our apps and services, they like that, both on Android and iOS. We're looking at a roughly $22.50 per month per user for that particular deal."

So if we go for multi-digit percentage being 10% minimum. At 26,000 phones, 10% is obviously 2,600 phones. At $22.50 per month we're looking at annual revenue of 702k. However, when Paul presented this, he knew these figures and he still called it a multi-million dollar deal. To get to multi-millions, or POs quoted estimate above of $2 million annual revenue, we are looking at 7,407 users @ $22.50 per month. This would be 28.5% of the banks mobile phones, so it's clear if the bank goes for this deal, they are pretty keen on NORs products (which seems to be the current concern, that companies aren't interested).

As of 2015 statistics, WBC had 32,620 employees, whilst NAB had 35,063, CBA had 45,129 and ANZ had 50,152.
So using the 26,000 phones Paul mentions, it is safe to assume the client is either WBC or NAB, as the other two banks definitely have more than 26,000 phones for their employees.


However, based on the 35k JMP deal, which was for 50 initial customers on World Phone and World Message with 5 users also using World Secure we get an estimated $55 per user per month with the 5 World Secure users paying extra.

35,000 / 12 months = $2,916 per month.
$2,916 / 50 employees = $58.33/month/user (but 5 users are paying for World Secure as well so this number is probably higher or lower per employee)


Adding all this data together it looks like an average client (who may be in it for WP and WM and Compliance like it seems the bank is, or might want the whole suite like JMP) will pay anywhere from $22.5-$60 per month per user. Let's assume most companies won't sign up too many World Secure users and so the $60 per user JMP seems to be paying is a tad high. Let's go with $30 per user on average.

Assuming this University with it's 50k students has at least 500 support staff, or 1 support staff for every 100 students, at an average cost per user of $30 there's at least 180k revenue in the possible Uni deal.

Now there's no guarantee we receive any deals. We could end this year with no deals. But assuming we get a big bank we probably get the Uni one too and then possibly the London bank, and some smaller contracts from Oracle clients etc.

On top of the above, remember that 215k unaccounted for Revenue? That can't have been the bank, PO said $2 mil for bank which is 500k per quarter. So there's other deals rattling around that haven't gotten the final signature that were going to bring in approx. 215k per quarter.

At an average cost per user of $30, 215k in a quarter implies 72k per month revenue. At $30/user that's 2400 users. 2400 users that have yet to surface but must be imminent.

With a few deals NOR could be servicing 7,500 WBC employees + 2400 unannounced users from above assumptions + say another 2600 employees across multiple new deals = 12,500 employees per month at an average price of $30/month = $4.5 million per year or 1.125 million per quarter.

As soon as "NORWOOD SIGNS 2 MILLION DOLLAR CONTRACT WITH WESTPAC BANKING CORP." is an announcement, share price will go crazy as new money sees how cheap NOR is. Then a month later we'll be seeing deals from everywhere as companies jump on board.

IMO DYOR.