idex 2009, page-12

Just to prove what I was saying re the ammo, read this, and if we aren't already at AFTER NEXT then we are extremely close!

Metal Storm expects three major revenue streams medium term. The mostimmediate is R&D contract revenue and MSI is already delivering this. The next ishigher margin, low volume sales of multi-barrel systems such as Redback andFireStorm, the delivery of which will not require dedicated manufacturing facilities.Finally, the largest but most long term is the delivery of large volume products suchas 3GL, MAUL and munitions, where full scale manufacturing production engineeringand tooling is needed. With this final revenue stream, an important commercialdifferentiator of Metal Storm kicks in. Unlike other weapons manufacturers that onlymake guns, Metal Storm has unique technology embedded in both the guns and the bullets – longer term the recurring revenue from ammunition adds to the valueproposition.As soon as we have qualified munitions, expected at the end of this year, the AFTERNEXT strategy can ramp up.In past years the Metal Storm team developed many valuable concepts and coretechnologies. Our current achievements build on this base, only now with a narrowerfocus, culminating at a point when we finally qualify a weapon and a munition and putit on the battlefield.Once this is done, with the credibility of fielded operational weapons systems and apositive cash flow, the Company can apply qualified munitions and qualified barrels