ntc gets 10m order from telstra, page-6

Its good news for sure.

Guys - The maths is like this.

NTC - has posted annual revenue of around $20M for years. They used to make profits and pay dividends on that too, before they got carried away on spending.

Then in recent times they p ulled in that spending, just making a profit in the first half 08.

They just announced that TLS's $10.5M orders were to cover July and August purchases only. We know that Maxon have lost the Telstra 3G business from June 30 on.

Therefore at this stage it is fair to assume that NTC will maintain this business level (if they don't stuff up) for some time.

There for its reasonable to assume that the addition to annual revenue from this one customer will be $10.5M times 6 (it's for 2 months and a year has 12).

So NTC's annual revenue could go from $22M to $85M. Profitability is yet to work trrough, but their average GP was over 30% before and I wouldn't imagine they'd have to increased their head count and Aust. expenses by much to cater for the TLS busi9ness, given that most of their back-end and engineering is done by their Chinese/Taiwanese manufacturers.

There you have it. NTC win the loterery and so do patient shareholders!

S