HCL 2.86% 17.0¢ highcom limited

The positives here are: - Technology contract for ~$16m in...

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  1. 2,997 Posts.
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    The positives here are:
    - Technology contract for ~$16m in support & ~$23m in parts over 4 yrs which is ~$10m per annum and at a 25% margin that is ~2.5m in gross profit
    - HighCom division run rate of ~$2m per month gives ~$24m in revenues and ~$12m in gross profit at a 50% margin

    That gives ~$14.5m in gross profit and ~$20m in total expenses (perhaps slightly lower with the savings from moving HighCom to Ohio).

    Still a shortfall of ~$5m, but you'd hope the one off orders make up for this, and good to see they are also looking for annuity style income which will provide a more solid base to support those fixed costs and then have the operational capacity to profit from the one off orders.

    "STRATEGIC GROWTH SRATEGY" .....lol - a few typos in the preso that they will have to work on to sell stuff to the americans (who are happy to pay more for glossy slick presentations)
 
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