If it was based on revenues then we would have seen drops around the announcement of these revenues. But we didnt, what we saw was drops based around people dumping RAP and the contagion that followed for us, and of course the disgruntled director selling issue. That's why we ended up here.
Yes R&D can be expensive. That's why I LOVE Alcidion. The management paid out near $20,000,000 of there own money to develop the software and it works! So no concerns there at all.
Yes, hospitals take a long time to go through their internal processes to sign off on any new projects. But as long as the sales team keep the leads coming in and moving through the sales cycle you will start to see them coming out the other side, signed sealed and delivered in a nice steady stream.
Yes, sales in the industry as a whole are very much based on "sales quarters" which the sales team will work towards. A high percentage of contracts are signed off very late in a quarter, often in the last minutes of a quarter, partly due to the fact that, as with buying a new car, if the salesman needs the deal through to make budget they will do you a better deal to secure that revenue and companies know this.
Yes Xmas to Feb each year are slow for contract sign offs, because people go away on holidays that time of year, especially upper management and therefore things slow down. But sales people will still progress deals along. The sales cycle is usually 6+ months, so early in the year being slow matters little if you are good at what you do.
ALC Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held
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