half yearly

The half yearly is due out in a few days.

TZ's previous revenues have been as follows:

H1 FY 2010 - $8.5m
H2 FY 2010 - $9.1m

TZ's targets for FY 2011 were as follows:

IXP - $3.7m
PAD - $3m
AERO - zero
PDT - $14.9m

TOTAL FY 2011 TARGET (no Intanova included) - $21.6m

For Q1, revenue was $4.76m (No Intanova royalites due to early stage of Intanova). Using $4.76m as a base quarterly revenue figure, an increase of 8% per quarter would ensure TZ would meet their $21.6m target for the full year.

Intanova have a $4.76m FY 2011 target. Currently TZ receives royalties, which at an estimated 5% should equate to $4.74/3 * 5% = $79k, for the past half year (Q1 discounted).

Therefore, the H1 target that we should expect as a minimum is $4.76m + ($4.76m*8%) + $79k = $10m approx

We should bear in mind the 240% increase in cost of sales between H1 2010 and H2 2010 (90% of which was for subcontractors & employment expenses)

H1 Cost of Sales - $2.6m
H2 Cost of Sales - $8.9m

It's imperative that these costs lead to revenue sooner rather than later. Long lead times are understandable, but 12 months after the initial ramp up began, we should really now be seeing a significant increase in revenue from these incurred costs.

If the solutions are as good as TZ believe they are, then with major partners involved, there is no reason why multiple contracts should not be forthcoming.