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01/09/15
20:24
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Originally posted by strauss
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The above title is the big question here
We now the Operating expenses and Admin are running at around $10m-$12m pa and we'd hope that after some cost cutting and synergies being realised once the acquisition of File Mobile is fully integrated into NewZulu we may see this figure lower. But lets work with the $12m Op Ex figure
We know that actual revenues up to 30th June which didnt include any of the new client deals we have signed were $1.5m
Adding up all the client revenue deals the company has signed we got a low figure $2.4m and a high figure of around $11m going off the company's guidance (note some these deals are all still in the trial phase and I dont think have progressed yet to actual commercial revenue)
Im incline to take the midpoint of these estimations and go with $6.7m or lets round down to $6.5m
This gives us potential revenues of $8m ($6.5m+$1.5m)
Of course there are alot of ifs and buts in the above but as you can see the company isnt miles away from achieving a break even result and current cash assuming no further acquisitions or unforeseen costs should last at least 12months
Converting these deals they've signed into actual revenue and landing some more big name clients will be the key for this company in the short term however longer term for a company that is shaking up the news reporting journalist industry there should be alot of upside from a $25m Mkt Cap
I hope we can have an intelligent discussion on the above
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One would think that there is keen interest in the trials that are underway. If the product is proven and the deals are realised then you could imagine things could move very quickly across the industry.
Not long until the first trial is completed so we may get an indication very soon.