******Words for the CEO - take 2*******
5) A question was asked if TPI had the building blocks in place for what he would hope to be a profitable future. How long would it take to achieve that? And are you properly financed to bridge the gap in the interim?
Paul Mighton -
"We are. Basically, it's the reason why we took the company to the public markets, was to raise the operating capital that we need to be able to participate. We have set what I believe to be modest goals, which we are already exceeding at this point in time, I'm happy to report. But in our first year of operation, we plan -- from a target perspective to do $5,000,000(US$) in business. And it looks like we're in line to be doing $7,000,000 or $7,500,000. Now that's just through our direct sales channels. That's not counting anything to do with our alliance partner opportunities, or our global distribution partnerships that we're having converstions with other large vendors at this point in time. But clearly the market has been identified by the Gartner Group as being a $1 trillion industry in North America alone. Now that includes all application development and all translation and migration work that's going on, even as we speak today. Extrapolated globally, it's about a $2.5 trillion to $3 trillion problem. Of which we have the world's best automated solution to address. So our three to five year plan calls for a -- we'd like to capture 0.1 percent of that $1 trillion market globally. Which if you do the math real quickly, that would turn us into a $1 billion company."
NASDBULL's comments-
Well, I would suspect that TPII will blow away that $5,000,000 revenue number if you ask me. Considering they just announced that vendor licensing deal that could bring in 18,000,000 alone in the next 20 months. I was also quite surprised to hear that by 5 years they want to be a billion dollar company!! What are all your thoughts on that?
6) The next question centered around growing the business possibly through acquisitions.
Paul Mighton's commments-
"Absolutely, in our marketing plan, we plan on growing two ways. Obviously through direct -- three ways, excuse me. Through direct sales, through strategic alliances to get into the large players marketing channels, and through acquisitions. And at this point in time, keeping consistent with our strategy of only wanting to participate in the automation part of this segment, we've targeted a number of companies that we're aggressively pursuing at this point in time. Now from a -- one of the questions that I'm very frequently asked is, you're tackling a very large marketplace here, do you have pockets deep enough to be able to sustain it? And we have -- I'm pleased to report -- been successful in attracting capital that we do need to be able to march this thing forward."
NASDBULL's comments -
Sounds good to me, I didn't think they had proper financing, but it seems they have their bases covered!
In my next post I will talk about the investment community, investment goals for TPI, possible takeover plans and discuss TPII's markets by type. Remember you can segment markets two ways, by geography and by type.
Matt |
