re: margins ... to demonic demonic ....
below is from the corporate synergy report. it suggests the sale of other people's prducts has a margin of between 25%-40%. ..... obviously the big dollars come in when medicvision starts selling its own products, but these margins are not bad ... so china projects should generate real cash for PBI.
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With no direct competitors providing total solutions, MVL has a strong position in the market. MVL has an exclusive agreement with Immersion Medical to sell its simulators (which generates a 40% gross margin) on an exclusive basis in Australia and New Zealand and as
a preferred supplier in China. Additionally, MVL has an exclusive agreement with Surgical
Science to sell simulators in Hong Kong, China, Macau, Australia and New Zealand ... non-exclusive agreements and the deployment of MVL’s own products in other parts of the world have huge potential to drive sales. Approximately two-thirds of PBI’s current turnover is represented by Immersion sales,
whilst the remainder is generated from Surgical Science. MVL generates c.20% of its revenue from consultancy services (designing skills training
centres) and c.80% from the distribution and maintenance of medical simulators to hospitals
and universities primarily in Asia Pacific. In the year ending July 2005, PBI generated sales
of A$1.428m from MVL, supplemented by a grant funding for PXL of A$0.20m ... Immersion products are typically sold for A$0.1m at a 40% gross
margin. Following the development of its own products such as the Epidural trainer, we
expect these sell at A$0.035m at a 57% gross margin. MVL generates additional revenue
from support, training and upgrades.
PBI
premier bionics limited
