2020 BRN Discussion, page-24827

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21/01/21

09:53

Post #: 50330055
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Originally posted by Violin1: ↑

Quarterly review due soon. As discussed previously, it's unlikely we'll see any sales revenue for a quarter or two - so what might we expect?
We have around 20 EAP customers worth $50-200k, according to Lou's last podcast.
I'd expect all of them to have signed and paid their initial entry fee to EAP, with some paying for at least some support component prior to end December 2020.
If we used the base of $50k as the sign-ons fee then quarterly should show $1m (enough to give the finger to soldiers, pigs and other ignored posters who keep raising revenue). We could easily see, say, $2m if the EAP isn't a flat $50k for everyone or if some have paid for some support. I wouldn't really expect a lot more than that, or say $2.5m, for the EAP customers.
Renesas is the big question. Lou says they are 'material', but I wouldn't expect sales revenue yet for a couple of quarters. The big question is whether Renesas paid a licensing fee that will be brought to book before 31 December. Did the parties sign and hand/receive a payment or did they sign and send an invoice (and if so is the invoice accrued to the December quarter books)?
My conclusion is that anything over a couple of million in revenue in the quarterly will give us a pretty decent starting idea of an IP licencing fee for a major global company.
I'm excited.
I've had a look through some Renesas reports but having trouble finding how many chips they produce as a starter for possible sales revenue. May have to go with revenue and assumptions on proportion of Renesas revenue that may use Akida and the percentage to BRN.

Just my musings. DYOR.

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You could well be right but personally remembering what the CEO said regarding the EAP deal when Ford and Valeo were announced it could be that the initial payment may be invoiced with the delivery of the Boards. I don’t know what the usual terms of payment Ford and Valeo have with their suppliers but as they are the gorilla in the transaction it could well be 90 days.

The other payment BRN will receive is for the provision of engineering support and once again I assume this will be invoiced following delivery of service and could also be 90 days.

It is the law of the commercial world that the bigger you are the easier it to a for you to stay big because you can dictate terms.

So I am not expecting much from this quarterly by way of receipts. I would like to be wrong but the boards went out in October/November and invoices followed with Christmas and 90 day terms.

Once again another anonymous opinion.
DYOR.
BRN Price at posting: 63.5¢ Sentiment: Hold Disclosure: Held
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