Are you aware how big Cisco actually are? They are a $100b company with offices rights across the US. They are a massive employer and mail out hundreds of thousands of network devices globally. Look them up if you've not heard of them.
When TZ stated 7 months ago that they were working on a deal which was potentially worth more than the entire PAD annual target ($3m), it basically put a price on how much revenue PAD can expect per deal with a major.
Don't forget that TZ has said that it is opening an office in SF to be closer to it's clients. Cisco are based in the SF bay area, so are no doubt one of TZ 'major customers that will provide high-visibility'. This debunks your view about confidentiality. That excuse is an old one, and the board knows that we know it, which is why they are not trotting it out these days.
Make no mistake. Each PAD deal is a huge money spinner, and that's not taking into account the annual software support and maintenance. This is where PAD differs from IXP solutions which are probably much smaller, even if they can be applied across more sectors.
Writer,
I don't agree with companies keeping 'powder dry'. It is not an 'nice' strategy. Like ASIC, I believe in full disclosure. Yes stuff is no doubt happening in the background but little is happening in the foreground! And all the while there has been cost to all non-QVT shareholders through delays ie dilution, while QVT has benefited. How long would you be happy with TZ keeping their powder dry? 1 year, 2 years, 5 years?
The current price is 26.5c with no sign of it moving up. One year ago we re-listed at 96c. The bottom line is that we invested for shareholder returns on our investments. The board have not delivered. The lack of promotion shows despite improving financials and operations, shows what failures they have been so far. If the board cannot show us how they are going to deliver returns, then they should step down and stick to running private companies.
TZL Price at posting:
25.4¢ Sentiment: Buy Disclosure: Held
