Here is how I see things.
There is nothing like a near death experience to focus the mind.
Our focus from this near death experience was a strategy to pivot the business back solely to a bespoke MEM’s & microprocessors business, but with a focus of development & production, rather than just development.
This required divestiture of non strategic assets, aggressively cutting back business overheads, ensuring the available resource was fully focussed on MEM’s, and in particular doing what we could to ensure key customers commercialised.
The conclusion of this process was reached with the sale of nanotron, and reduction in key management ... including Ralph himself and his $300K salary. We simply couldn’t afford it.
I believe the business now survives, or dies, based on the success/failure of 3 key customers over the next 12 months ... with the wild card of the US Government CHIP programme.
We have the funding secured to see this time period out.
Of the 3 main customers, with the ability to generate significant revenue in FY 21/22
We have a target, sales of ~$1.8M a quarter, with a 60% margin this will cover on quarterly overhead of ~$1.0M.
Once in profit, positive cash flow, the journey of building a business can begin in earnest.
Abiomed – Back on track, now supplying 4 products rather than 1, can expect run rate to return to > $600K per month, with substantial increase due to 4x supply
LifeScan and the OneTouch CGM – Full steam ahead for launch / forecast sales $4M per year to Sensera with upside.
So my take is, without NanoDX,or the wildcard, we will move to profit.
If the US Governmet CHIP wild card is played, all in ... we are off to the races.
NanoDX – Confident on TBI but that will take a while, Covid 19 gets to market?, we are off to the races.
Possible downfall, a curve ball hits Abiomed or Lifescan, impacts timing > 12 months, and we do in fact run out of funding, and US Government doesn’t step up.
I’m still in because I believe the strategy is sound, we have proven with Abiomed that we produce great products, we are in a US nominated strategic category, and in a high growth segment.
We have 3 innovative key customers in high growth categories with market winning propositions.
Just give the strategy time ...
IMO
