The GE shoescanner has been withdrawn from the market for an indefinite period of time to fix technical problems (perhaps associated with QRS technology?).
Also cf., for some background: http://www.usatoday.com/travel/news/2007-01-16-shoe-scanner_x.htm
QRS has made a big deal about its licensing agreement with GE (where QRS gets roughly $3k for each shoescanner sold, according to ASX notes released by QRS. If the product ever gets to market, GE could expect to sell at least 20 scanners a year, giving QRS a 'massive' $60k per year in licensing revenue!).
The dollar figures involved may be tiny (i.e., less than a potential $100k per year), but surely QRS should have disclosed to the ASX the fact that this shoescanner has been taken off the market??
As recently as Sept 28, in the annual report, QRS had this to say about the shoe scanner: "Deployment of the GE ShoeScanner product, incorporating QRSciences’ technology, across US airports through the Clear® Registered Traveller program, that will generate a royalty stream to QRSciences." This looks like a highly misleading statement to me. The fact is is that at the time QRS management made this statement, the scanner was no longer being deployed (it had been withdrawn from use in airports).
A company cannot release only positive news about its products and withhold negative news. If the GE shoe scanner is significant enough for QRS that management have repeatedly told the market about it, then the scanner's withdrawal by the TSA for technical reasons must also be news that is important to the market.
How many of QRS' products have technical problems that we are never informed about?? Could this explain why its products to date are only ever sold for testing, but not for commercial use?
Is QRS fulfilling its continuous disclosure obligations?
QRS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
