This post refers to the above post I put up just prior to the last quarterly and my personal sentiment and thoughts at the time so please read first!
As I stated prior to the last Q, I and many other believed $2 - $4 Million was around the mark for cash receipts given the US$ 18.5 million 'Foundation for 2016' release in December 2015 which stated :
"Leadinginto 2016, we have alreadysecured over 45 customers for an approximate US$18.5M (baseline) of earnings, withina potential order book of US$44.7M from thesecustomersalone for 2016"
Most if not all of us were underwhelmed when the cash receipts were just $866k and as stated above, the groundhogs did see the dark cloud and the share price that day closed at 63.5c and 3 months later on today we closed at 63c.
So as I see it the "Foundation for 2016" statement was akin to building a house, at that stage 10 months ago they had just layed the cement slab and had all the building materials (chemicals/IP) necessary to complete the job.
As time went by inclement weather and union problems (for AJX possible delays in receiving receipts resulting in a lower than expected last quarter) created delays but the builder continued to reinforce that the job would be completed on time (US$18.5m 2016)
As the year progressed the customer asked to build a second story to the house and a pool (Alexicool) to add value to the house for a possible future sale (takeover)
I have no reason to believe they will not reach or exceed their targets and surely by now with just over 2 month until the end of 2016 all clients who will be included in their figures would have been billed if on 90 - 120 day terms.
Alexiums progress since "foundation of 2016" statement :
- Alexium Secures New business and Purchase Order with New Interior Furnishings Customer
Annual annual run rate of 600,000 yards totaling $1.2-$1.5M US
- Sales to 18 New Customers Rapid Sales Generaton Progress during March Quarter 2016
Revenue positon on track for US$18.5M baseline forecast for CY2016, with significant upside potential
-MULTIYEAR SALES AGREEMENT WITH NEW GLOBAL BEDDING PRODUCER FIRST COMMERCIAL USE
OF ALEXIUM’S FIRE RETARDANT FOR PHASE CHANGE MATERIALS
Alexium deal breaks new ground in PCM bedding market, with estimated share for Alexium of more than $5 million revenue per annum
ALEXIUM TO PROVIDE CHEMISTRY FOR GLOBAL TENT SUPPLIER New client represents at least $150,000 in revenue per month upon full transition to Alexium
chemistry in third quarter
-Customers sourced by distribution partner iTextiles represent annual revenue for Alexium of more than US$1.7 million in calendar year 2016
-NEW US AND EUROPEAN SALES FOR ALEXICOOL
Two new clients represent a total of US$2 million in annual revenue
-ALEXIUM SECOND HALF 2016 SURGE CONTINUES WITH MULTIPLE PURCHASE ORDER
-Alexium to Supply Alexiflam™ and Alexicool™ to Two U.S. Mattress Ticking Producers in US$3 Million Per Year Agreements
Sales are expected to commence immediately with monthly revenue to continue over an initial three-year production period, representing sales revenues in excess of US$3 million per year
It would appear we have a near on FR monopoly situation in the bedding market with Alexicool and some bigger players in the FR market must be getting nervous as for every win Alexium has, someone else is losing clients.
Lets hope for some rocket ships in the coming weeks
