Sorry, but we are not going to see significant revenues from product sales this financial year. FY24 should see some good sales revenues, but I would still be very surprised if they posted a profit. Remember that BLG is targeting under-served wavelengths and custom form factors. For many of BLG's customers, the availability of these new laser diodes means that they now embark on their own round of R&D to apply them in their equipment and processes. From there they will start using the diodes, ramping up their orders over time. Where BLG's diodes are used in manufactured equipment, the customer base will grow as units are sold. This will take time to build momentum.
I would estimate FY25 as the first year that the company might make a profit. Even then it's probably a long shot. A lot may depend on ongoing R&D. There are many possibilities for future product development. The clock is ticking on patents, so they need to keep striving to convert these into marketable products.
In short, BLG remains in R&D phase for the moment. It's full transition to a profitable, dividend paying manufacturing company that develops it's own products, will take years yet.
NB: the above post is opinion only and should not be construed as financial advice.
BLG Price at posting:
7.3¢ Sentiment: Hold Disclosure: Held
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