What if Unisys can sell 10,000 units of Ardes 2K in a year?
In the conference call, DDIM said Unisys would meet their goal of selling 10,000 units of Ardes 2K within a years time. They also said Unisys (and other licensed resellers) were getting ardes @ 60% discount. So DDIM gets $1,800 per CD. This gives DDIM another 18,000,000 over the next year from Unisys resales. Nice, if it happens, but IMO still not enough to justify current price.
From the conference call, it was pretty clear that DDIM's direct sales of Ardes 2K are going to be limited. They may sell hundreds or even a few thousand, but not tens of thousands directly. It appears they are going to be reliant on their major resellers for the volume sales, but as noted, the problem there is their margin is cut way back on those sales.
I would like to get others feelings but I did not get the feeling that Ardes 2k sales were going to become the main revenue source for DDIM. This is what has to happen to justify this price. It has already been noted that consulting revenue growth is limited by how many technicians you can hire, train, retain, etc. I don't think their consulting growth can go at any faster rate (About 30% per quarter) than it already is.
I'm glad to hear that they will be reporting income by seperate divisions in coming quarters. Q3 will tell us a lot. |
