I emailed the company on a number issues relating to that interview. They responed that they could not disclose the information I requested without making an annoucement. They are very conservative on these issues. See a section of my email below.
Cheers, Brantley ------------------------------------------- //Now to the L3 licensing agreement.
These question arise from your Investor Brief interview.
First you state “If you consider the L-3 agreement in isolation, if QRSciences’ technology was deployed in less than half of L-3’s systems, the Company would derive revenue of more than A$100 million”. Over what period of time are you looking at in deriving this A$100 million in revenue?
Second when you say revenue of more than A$100 million are you referring to Gross Revenue before COGS or Gross Profit Margin or EBIT or something different?
Third is the timing of the revenue. You state “Coordinating product development teams and navigating the certification process through the TSA can always slow things down, but we are hopeful that a fully integrated product will be in the market during the 2004 financial year”. Can you narrow that down to the first half of 2004 or the last half of 2004?
Fourth is the question of the L3 licensing agreement on dealing with other companies. Does this agreement lock QRS into dealing with L3 exclusively or do you have the ability to sign agreements with other companies going forward on the development / R&D of QRS devices? I know you stated, “With L-3, QRSciences has another significant partner to assist in rolling out its technology in the homeland security and aviation industries. QRSciences has attracted high quality customers, two of which collectively control over half of the world’s screening market and a third that is one of the world’s largest systems integrators. Each of those groups has the resources and infrastructure to ensure they play major roles as the next generation screening equipment comes on stream. QRSciences will work with each group in the development of those Products”. We just want clarification on the company’s ability to sign deals with other companies going forward.
Fifth is what is the current status of QRS’s relationship with Lockheed and Rapiscan? Is any revenue being generated at this time from either one or both? Any clarification on this would be appreciated.
Sixth is the clarification of the company’s relationship with InVision / Quantum Magnetics? You state, “For some time, InVision and QRSciences have had informal and amicable discussions about the best way to achieve that objective”. Can you clarify what this means? Are they competitors or collaborators?
