Something niggling me is the size of the market. Have most of the potential customers already bought a monitor or two? There are several alternatives, budget and dearer, and hardware is something that is not upgraded regularly. Atomos has a small range of products in comparison to the likes of Blackmagic, which also has the hugely popular Davinci Resolve software. A lot will hinge on customer up-take of Atomos cloud studio solutions, but it is very early days, and the business is only expecting this to bring in a few million in the next 2-3 years.
If customers are not buying more monitors at giveaway prices, Atomos can hardly blame the ex-CEO, or soft market conditions. They have been marketing aggressively for months, and sales have gone down in the run up to Christmas? It really looks to me that the business is having to start again, and setting some very low expectations. Even at these prices, it's looking high-risk to me.
AMS Price at posting:
7.0¢ Sentiment: None Disclosure: Held
