On your first point ‘Do I think their product is good enough?” Well personally I do for what its worth but I don’t work in the industry so with my limited knowledge of this field all I can do is take into consideration that the organisations that are implementing Razor do consider it good enough. I get the impression that the last couple of announcements by the company regarding the International Derivative Clearing Group and the impending changes to legislation will be very significant for RZR. In my opinion the relevant authorities went soft on the implementation of regulating the financial institutions in the US hence the delay for this company gaining traction in the market place and them falling a bit short on their 5 year plan and of course the little GFC. That lack of regulatory enforcement looks like it is about to change.
As for your second point about generating some investment interest, well I guess when they have plenty of projects in the pipeline and can implement them reasonably quickly people will wake up and take notice. It just seems to take so long to get anything on the bottom line when dealing with these financial institutions.
If you consider these Razor deals are multi million dollar contracts that include a million dollar sign on payment, they declared a $450,000 profit for the 6 months to December 31 , costs having been trimmed back to approx $3,000,000 pa and along with their ongoing income stream. I’m sure RZR will be in profit this year, I can’t really follow it exactly because very little info is made available regarding the confidential contract values and payment time frames as these depend on the types of licenses issued etc etc though I think they are now dictating and achieving better payment terms. As an example take this latest announcement;
Razor Risk Technologies Limited (ASX code: “RZR”), a leading global provider of software solutions created in response to the complex issues surrounding risk measurement, management and control, is pleased to announce the production implementation of the market leading RAZOR risk management solution for the International Derivatives Clearing Group (IDCG).
What does ‘production implementation’ mean?? And what bearing does it have on income this year if any? I have no idea. I assume they were paid a sign up of one million dollars US I think probably prior to Dec 31.
cheers
RZR Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
