Gross profit on initial contracts in this industry are at a lower margin, but the "stickyness" that CEO Kate confirmed on the conference call is basically 100%, ie contracts are almost always renewed. And the margin on renewals is very, very high.
Once the legwork in setting up is done during the first period, to integrate Alcidion's products with the many different system combinations in each hospital, the profits flow in.
Thus the reason Kate and the Alcidion team are focused on the revenue growth side, it reaps huge profit rewards in the future as revenues grow.
Some would have you believe the issue is something along these lines, but in reality they will always find something, bo matter how weak the argument, to show that the blatant manipulation is actually real market sentiment. "Look over there"...
DYOR, outside Hot Copper.
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Gross profit on initial contracts in this industry are at a...
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