Their powertrain engineering services are not well explained by the company.
In actual fact, powertrain is the most profitable group within OEC at the moment. (ramp up to profitability of Synerject and improved royality flow from licences is all just a bonus). OEC costs are low, they simply just sell/profit from their existing IP, developed at much pain and expense of previous shareholders.
OEC total annual costs are only about $10 million. Powertrain will generate about this amount 2004/05 and alone will have the company cash flow neutral. (They had most of $4.9 million worth of orders in Dec for 3 month period ending March-OEC say they only book 3 months in advance).
OEC consultants are world regarded and provide advice to engine manufactures/governments on best pratice environmental satisfactory solutions. The role they undertake offers the great opportunity to "sell" the OEC technology while being payed to do so.
Looking for $6 million profit for this half.
An apparenty high growth technology company with a heap of cash and a cap of $45 million, and needs to trade on a proven PE multiple of 10, before the share price goes up. !!!
OEC Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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