TMT's Jan 2017 report - good read!
http://www.xped.com/irm/company/showpage.aspx/PDFs/1570_0/TMTFlashNoteJan2017
Lenze to roll out ADRC functionality across its consumer chipsets
Under the terms of the agreement, Lenze will be able to use a white label
version of XPE’s DeB for its consumer products solutions, including
wearables and home automation. Agreed license fees have been derived
from XPE’s standard pricing schedule, being
US$ 0.15 per active download
of the DeB used to remotely control one ADRC-enabled device. For future applications, including the ADRC device proxy, the ADRC daemon and XPE’s Remote Modelling Language (RML), a license fee of US$ 1.00 per gateway applies in situations where multiple devices are being controlled from the DeB requiring connectivity other than ADRC (e.g. Wi-Fi, ZigBee) and US$ 2.00 per device in case the customer devices require use of XPE’s full infrastructure platform. We believe actual, negotiated, license fees will be lower than these standard rates though.
(From above in bold - an idea how Xped will charge their fees for all clients)
Lenze’s production numbers underscore the potential for XPE
Currently four Lenze devices requiring the DeB download are slated for
near term roll out, i.e. in the first half of 2017 with revenues for XPE expected
from 2HY17 onwards. This is in line with the assumptions we made in the
financial model in our initiating research report.
While starting off with four devices, XPE expects to be able to roll out ADRC
functionality to the vast majority of Lenze’s products over the next eighteen
months, this roll out being a function of the speed at which Telink
Semiconductor (Telink), Lenze’s supplier of ADRC-enabled chipsets, can
finalize ADRC porting into its chipsets.
Given Lenze’s forecasts to grow overall unit shipments of its devices from
100M in 2016 to more than 200M in 2017, we believe this deal signifies a
major breakthrough for XPE from a potential revenue perspective.
Furthermore, it illustrates the commercial viability of the technology, which
XPE will be emphasizing with other prospective licensees, potentially
expediting other license agreements. Based on the current sales funnel, we
would expect XPE to sign additional customers in the near term
(20min delay)