Expectations

It seems to me that there are a number of very vocal BRN posters who simply don't get what this technology and this company is all about. A recent example was the comments around the facial recognition contract for the SCG during the 5th test between England and Australia. I think many people need to understand the difference between the development of a new technology (Spiking Neural Networks) and the deployment of a system in a real world environment. BRN currently has neither the application software nor the human resources to deploy a real time facial recognition system on this type of scale.

There is a MASSIVE difference between a demo of the technology itself and the production of a complete, saleable system that uses that technology. BRN's focus is, and has always been, the production of a SNN chip, not the development of application programs for the technology. That is precisely why they have followed the strategy of partnering with organisations such as Cisco, Rockwell Collins and others who have the resources, contacts and corporate will to apply new technologies to real world environments.

Over the years I have worked for a number of software companies, one of which used a direct sales model and a couple who had a predominantly channel model. The sales cycle and process for those companies is substantially different. BRN is working the second of those, the channel model. This by its nature takes longer to bring to fruition (i.e. cash generation) but has a tendency to create much "stickier" customers. Once the technology is embedded in a VAR's product, it is very difficult, expensive and time consuming for them to change course. And of course the VAR bears the cost and risk inherent in the development of the application,  something that should not be underestimated. The VAR also takes responsibility for marketing the end product, again at substantial cost and risk.

BRN's corporate strategy is clearly to develop a new technology and have partners use that technology in products and systems that address the real world problems confronting their clients. In my view this is the only valid strategy for a technology that has the capability of being as ubiquitous as SNN's. After all, you don'e see Qualcomm making and marketing mobile phones, do you? My belief is that if one's investment objectives and philosophies are not aligned with BRN's corporate strategies then one will be constantly disappointed. If that's the case then maybe your hard earned money may be better deployed elsewhere.

FWIW