From the Open Briefing in April, Icant read any dire warnings in the tea leaves from this.
8. Labcon has a US$11.6m contract with you and you are negotiating with a number
of potential new OEM partners. What is the status of the Labcon contract and how
engaged are the potential new OEM partners?
The Labcon contract is in place as a long term multi-year working partnership, where we
are both working to deliver in scale into the marketplace.
With lock downs in most geographies there are difficulties at Labcon similar to ours in that
they literally cannot visit some of their potential customers to make the sales. We are
working closely with Labcon, redefining delivery schedules and aiming to be even better
positioned with a broader range of products when we come out of this.
In terms of other potential OEM partners, we are still seeing very good engagement despite
only being able to meet via audio and video conference. This is very pleasing given some of
these groups, e.g. internal R&D groups at some target OEM partners, are working from home
or in severe lockdown, spread across multiple different jurisdictions. So clearly their R & D
continues on our products and how they can use and implement Bluechiip technology.
Our expectation, as the year progresses and lock downs ease, is to see some solid business
cases put by these OEMs to their decision boards and decision panels to move through to
execution of licence agreements.
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