There's a lot to like in the report. I especially like the...

There's a lot to like in the report.

I especially like the customer-centric solutions-based approach to building the business away from the hype of IOT, the almost understated way Dave explains it all, and what it means for Buddy shareholders.

A huge market exists... our average deal size is increasing – we started the year with average deal sizes sub-A$75,000 and now the average size of a deal in our pipeline is nearly A$300,000 (and this will increase even further following the closing of the acquisitions of Noveda and Zentri).

In other words, our solutions-based approach is resulting in bigger deals closing faster.

We’ve got tremendous first party evidence that budgets are opening up for solution development. That bodes extremely well for Buddy.

Once closed, Noveda and Zentri will give Buddy a true “silicon to visualization” product offering, and will allow us to be very competitive on a global basis in this space.

We are now building proofs of concept and winning commercial deals that span silicon, data management and consumption (visualizations).

Our ability to service customer’s needs from top to bottom with a Buddy offering opens up tremendous new markets for us.

We anticipate reaching partnership deals with organizations that may otherwise be considered partially or substantially competitive.
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Our success in this space has the potential to be very substantial indeed.

At the coming shareholder meeting the Board is asking shareholders to approve a change in the scale of activities for the business. This is necessitated by the jump in revenues, data traffic and customer numbers that will result from combining the Buddy, Zentri and Noveda businesses.

This jump is quite significant.

Really? Can't think why

With US$110 million in five-year revenue opportunity from previously disclosed deals
such as Energy Ottawa and the New York State Energy Research & Development Authority, we’re very bullish on the impact to the business of the Noveda acquisition.​

For Zentri to result in the maximum possible earn out, they would need to contribute ~US$18.45 million in revenue to the business by December 2017. These figures are projected by Zentri on the basis of their sales forecasts and resourcing in various global locations.​

So Buddy revenues will go from an almost standing start to several tens of millions next year. Little wonder Dave is extremely bullish about Buddy's prospects, and why we as shareholders can expect big things from them in 2017. Little wonder also that a businessman and investor of Rick Borenstein's reputation, stature and success is Chairman of the Board. And that's without factoring in the vast - and relevant - experience of the other Directors and management team.

I'm guessing they all see something the wider market has yet to pick up on. Which of course is why the market in it's infinite wisdom has marked it down.

Go figure

I have, and I like the way it's all starting to add up

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