ahaaaa 33 million dollar deal, page-5

Today's announcement is not clearly worded. It could mean that if QRS receives at least $33mill in revenue over the next 4 years from Rapiscan orders, then Rapiscan will retain preferred pricing and licensing rights. If this is the correct reading, then this is a significant announcement (the first significant announcement QRS has relesaed in years). However, the announcement could also be read in another way. It could mean that in order for Rapiscan to retain pricing/licensing rights, Rapiscan itself must sell at least $33mill worth of QXR1000 systems over the next 4 years. If this is the correct reading, and I think it is, then it is not a significant announcement. A$33mill worth of QRX1000 systems equals roughly 70-80 systems. QRS receives US$10k per system in licensing revenue, so, the sale of 70 systems (i.e., $33mill worth) over 4 years would generate for QRS US$700k over this period. This suggest that QRS is expecting to generate little more than US$175k per year from its agreement with Rapiscan. Not much to get excited about.

Interesting how the share price shot up the day BEFORE the announcement on high volume. No doubt the insiders who bought yesterday are selling to those buying today. Be very careful with this one.