A lot of effort was spent reducing the number of customers with lower than expected margins. What a joke! It's the volume that reduces the cost and in turn increases profitability through economies.
It is now clear that there were no economies of scale with the original contracted clients, so it had to be done. As I understand the philosophy now is to only take on contracts, as you say, that have substantial volume to make those economies of scale viable.
Assumption and i do mean assumption only....What if we are not selected as preferred supplier to the Military etc. etc.
I don't see this as the company maker anyway so for me, whilst in the short-term it would create negativity for sure, a failed outcome here wouldn't mean a failed company imo. On the flip side a positive outcome might not produce the significant revenues that some think it would certainly be a huige tick for validation of the technology.
I have worked with many international companies in the past who once business is established don't have a clue how to secure future business.
Absolutely. There is a skill, and often a certain amount of luck (timing, political decisions etc etc), required to substantially grow a company. There have been many historical instances of great product companies go broke because of a lack of business acumen. Even your Apples went through these phases. Personally, based on the information presented, and the significant success in the bedding market I think the copmp[any is now on the right track and poised for further growth now that the difficult decisions have been made. But as I always say there are no guarantees. There's risk to any investment.
AJX Price at posting:
25.5¢ Sentiment: None Disclosure: Held
