IIR Initiates Coverage: 4.7c price target (DCF base case), page-77

A couple of additional points RE: pricing and the liklihood of contract renewal:

1) All the "project" revenue derived by CXZ for product enhancements is paid for by GM - this has been in the millions over the last few years, so I doubt they would walk away from such an investment in a niche product.

2) CXZ actually receive US$5/user/month, but rebate US$2.50 back to GM/OnStar - so really they only receive US$2.50/user/month net. This could be where the improved terms comes from.

3) This is a niche product, aimed at helping car dealers manage rental/loan cars. Most of the telematics products out there are geared to corporate fleets, and are all encompassing, that's why they are expensive and most modules not applicable to the car dealership requirements.