It definitely is very conservative but if you add one new customer out of each of the five sectors annually, even that would be a great revenue enhancer, the size of the businesses of the customers we are approaching are massive.
We had very few customers early last year, we now have heaps in the pipeline.
From Proactive Investors on the
2-3-16 (in part)
Alexium International Group appoints Cowen and Company
Wednesday, March 02, 2016
Recent Alexium achievements
Last week Alexium entered a final validation phase with a new customer, as the company continues to build its customer pipeline.
Dirk L. Van Hyning, Ph.D. (President) told Proactive Investors that Alexium currently has over 20 customers actively generating revenue at some level.
"We have 31 customers in active late-stage scale-up mode, all of which have financial commitments to cover chemistry and/or our time and travel.
"We are actively developing formulations for over 100 potential clients in our development labs with more being added every day."
Remember that the 'secured' US$18.5 minimum baseline revenue was already booked in from existing customers in the
16-12-15 foundation newsletter.
From the 14-3-16 Ann.
Sales to 18 New Customers
Rapid Sales Generation Progress during March Quarter 2016
Highlights:
- New customers represent wide range of target markets, including polymers and resins
- Alexium increases customer portfolio by a further 18
- Work with polymers and resins clients moving expeditiously
- Revenue position on track for US$18.5M baseline forecast for CY2016, with significant upside potential;
- On schedule to achieve cash break even during CY2016 on basis of strong margins;
- Year-long history of quarter-on-quarter growth forecasted to continue through CY2016
and CY2017;
Perth, WA and Greer, South Carolina: Alexium Interna;onal Group Limited’s (Alexium) (ASX:AJX, AX:AJX, OTC QX:AXXIY) is pleased to advise progress in converting development and trial run opportunities into active revenue streams.
Alexium has made sales with 18 new customers (past the trial run process) thus far in 2016, across our range of environmentally friendly Fire Retardant (FR) products and representing a wide range of target markets and annualized sales volumes.
This generation of new clients and broadening of target markets to include the large polymer and resins segments provides upside potential to our baseline revenue forecasts of US$18.5m for CY2016.
Given the increasing rate of customer generation, Alexium will generally provide summary press releases in place of individual announcements going forward.
I find that report to be extremely conservative and not in line with a growth company.
How does one guess at how many customers we will acquire?
Do they go off rule of thumb or do they say, ok this company has disruptive technology that's going to be enforced by law, I really can't think of another scenario where they could get a prerequisite from.
IMO all they can do is take a guess!
Cheers.
