I assume they get the full $8-10, some schools will pay whole amount up front but there might also be some paying over the year...obviously there are some supplier costs involved that is then taken out of that, but that would go into COGS. And yes the added annual recurring revenue for this quarter is around $1m. The BW analyst actually did an estimate and the figure was approx $1.1m.
I expect their will be a one off increased expenditure for september quarter related to the new equipment/solutions they are rolling out to some existing school clients (Refer Checkpoint announcement), but that will be recouped (plus a profit margin) over time.
Ann: Exceptional sales growth across all channels in Sept Quarter, page-8
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