mxl speculation MXL is up 8% on some impressive volumes.
I know a lot about this sector and it is very, very hard. MXL are heavily reliant on revenues from big contracts in partnership deliveries that take multiple years to win, in the mean time they need to fund highly paid sales and development resources. It's high risk, high burn and could go anywhere depending on whether it gets bought out or signs a deal
The key markets for the product are huge, but are largely immature in australia.
NSW Education is in an absolute IT mess, and they are going to try and fix it thru thier own redevelopment of core systems rather than going externally.
QLD education is probably the only market that would consider a shelf solution, but it's small
WA wont do anything until the Shared Servies project is fixed
VIC is a mess and worse than NSW
The tier one players in the university sector already have existing relationships with SAP and others
So that leaves MXL's markets as:
- Tier 2 uni's
- What they can scrape together . . with a lot of work out of the QLD and other markets, with the keystone alliance
That aside - the student information systems around australia are hideous and there is MILLIONS of dollars set aside to fix them - so there is a big potential upside if they can crack the market.
MXL
mxl limited.
