While some here will continue to live in the land of "pipelines," "big boy manipulations" and "deals closing" I'd like to live in the land of facts...
On March 6th, 2018, Norwood Systems released an announcement entitled "Market Update."
In this 'Market Update' the company writes:
"Norwood understands that an Australian financial services institution is weeks away from finalising the final financial approval on a modernised Mobile Device Management platform that would form the basis for enabling any potential scale deployments of Norwood’s VBMS solution to the institution’s employees and contractors."
It has been eight (8) weeks since, with no word on this Australian Financial Services institution (henceforth AFSI). It was so important, they included it in their Market Update, but they haven't mentioned it since? Just in case anyone struggles with mathematics. On average, 1 month = 4 weeks. Therefore, 8 weeks = 2 months.
When mince at Woolies is 1.2kg, they don't label it 1200g. When a song is 3 minutes 20 seconds, it's not said to be 200 seconds long. When a burger costs $12.50 it's not said to cost 1250 cents. When the words "Weeks away" are used, this implies a definitive time frame. If NOR believed this AFSI was 3 months from finalisation, or 2-3 months away, any reasonable person would have expected that they would use the word 'months'.
Therefore, this "weeks away" was, in my opinion, either used purely for hype, or is late, or failed to materialise. All of these options are bad. There's no reason for NOR to write "weeks away" if it was still months off...
If someone wants some icing on the cake:
In that same 'Market update' the company writes
"The Company is pleased to announce that it has reached agreement on terms for extremely aggressively priced “all you can eat” monthly access to Fon’s premium carrier Wi-Fi networks around the world and for the integration of such networks into the World Wi-Fi platform. "
6 and a half weeks later NOR makes a market announcement in which they wrote:
"‘Sharing Economy’ and ‘Communications as a Service’ pioneer Norwood Systems Ltd (Norwood or the Company) (ASX: NOR) is pleased to announce it has finalised a signed agreement with Fon, the global Wi-Fi network, for the provisioning of premium Wi-Fi services within Norwood’s World Wi-Fi product."
In my opinion, the company received very little interest in the initial SPP, so they extended it. When, in my opinion, they again received poor interest, they released this fluff piece about the Fon partnership to see if they could spark some interest in the SPP.
With the quarterly mere days away, I'm predicting $1,400,000 in cash outflows, and $76,000 in revenue. Well below the companies forecasts. But we've seen nothing except the $35k deal, and with the apps not even ranking, I am only assuming we will make around the same $65,000 as last quarter + an extra $9,000 from the US Investment bank and then a little of wiggle room = $76,000 total is my prediction for quarterly revenue.
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