Ann: Q4 Sales Update - Record Qtr $6m in New Sales, page-17

I just went over the Q4 report CP and as we know current total ARR
is $53 million. In the notes on page 6 it clearly states that churn is already
factored into the current total numbers as is foreign exchange etc. Churn
has previously been listed at 2% and currently sits at 2.5%. EVS has also
previously stated it is pursuing high growth options and isn’t going to actively
chase low profitability contracts which makes perfect business sense so perhaps
that’s why we have seen a marginal increase in churn in this quarter. I think
the total current annual recurring revenue numbers are what the market should
really be focusing on because at some stage that revenue is going to overtake
current total costs of doing business. I like your future projections however that is
purely guess work and doesn’t factor in the potential ramping up of EVS water
as it begins to gain market traction and acceptance. Yes it’s currently slow but it’s
also a new product line and may start to grow at a faster rate than what the market
is currently factoring in. Meantime OMNIS is also powering ahead at the same time
as the aviation sector is beginning to pick up new contracts. The report advised 20
sites picked up in Q4 and revenue of $6 million in total. That averages at 300k per site
although that includes project work of course. So when I break things down in that way
I see reason for increased cautious optimism for EVS going forwards and perhaps their
growth trajectory will pick up faster than the market is currently factoring in, cheers