Ann: Shareholder Newsletter-AJX.AX, page-116

No they are not undercutting. What they are doing is providing the "engineering samples" at near to cost as the customers need to run tests to see that AJX products do what they are meant to and can replace the customers current products. After testing the customer figures out the products are good and places an order, tools up and starts producing with AJX products. 60 - 90 days after delivery of the product the customer pays for teh first order and probably orders some more.

So for the first 120- 180 days very little money changes hands.