Spending a lot of money on sales/marketing (or increasing the cost base by hiring a lot of salespeople) does not sound like a good strategy when their margins are so thin (unless we are talking about a licensing type deal). My sense is that once they sell a fibre installation, the client is set for at least 10 years so it's not a repeat business.
What I hope they do with the $15m is develop a more comprehensive set of software tools (constantly improving from a software perspective what the fibre can detect, leveraging AI for example) to enhance the offering available to the client so that they end up generating long term recurring revenues. They can then sell that to their 2500 installed base of clients in addition to the maintenance contracts
AVA Price at posting:
26.5¢ Sentiment: Hold Disclosure: Held
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