qrsciences announces further sales, page-3

Copy of Jerry's post from SS...

jerry

Posted: Monday 30/08/04 06:32pm
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Reading through today's press release it seems we have very good news indeed.

3 Machines Sold in less than a week!

Within a week we've seen the company sell three of its stand-alone scanners. All these sales are outside the transport sector. Two sales to Rapiscan and one in Canberra - these stand alone machines are high value items in the $300K range. This makes 3 unit sales in the 14 days that have transpired since the company announced its market release of the T3-QCP device. Revenue from these sales should be in the order of $900,000.

Parliament House Deployment?

I note that Advanced Security Systems supplies security equipment to the Parliament House in Canberra. I think it is likely that the sale into Canberra was to the Parliament House – there have been incidents in the gallery in the past.

If I'm correct, this is a high profile deployment of QRS' scanner that bodes well for QRS being able to get its machines into houses of government around the world. Moreover, it is good news considering the likely size of the market that exists outside the transport sector (see my previous post).

Interest in substances other than explosives
I found the following comment by Advanced Security Systems very interesting:
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QUOTE
"We are also excited about some other product ideas that QRSciences are developing that extend beyond explosive detection and cover a range of other substances that our customers have an interest in locating."
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One of Advanced Security Systems customers is the Department of Corrective Services. It is possible they will try and place QRS' machines with prisons for drug detection purposes.

Servicing Revenues Likely

We should also remember that security system suppliers make significant revenues on servicing - this is true for Invision among other manufacturers. Servicing for QRS' machines is likely to include:

Calibration services -

This is likely to be a high value item as it will require qualified technical personel with specialist training and experience Quadrupole Resonance. It is also likely that R training and experience.

Firmware Updates -

I assume that the DSP is implemented via Field Programmable Gate Arrays - QR requires fast, complex processing - it is likely that microprocessors will be too slow. The field programmability is important as will allow Digital Signal Processing updates to be applied to the machines in situ as new pulse sequencing and signal detection algorithms are devised to increase the effectiveness and sensitivity of the detectors. Moreover, as the database of target signatures expands to include additional contraband these data files can be loaded into the machines in the field. But, most important, it means that QRS can charge for each advance in their software over every machine in the ultimate installation base.
Servicing on Machine Components - Servicing of components in the QR Scanner itself that are subject to normal wear and tear such as motor brushes and belts.

As Krumbs said, another brick in the wall.

Very positive news smile.gif

Jerry