Yes and Yes - for most of Liberate's contracts there is a recurring revenue stream. Sometimes that recurring revenue is $/sub, % of consumer revenue, ongoing support and licensing, etc. Sometimes the contracts are one time, up-front software packages (usually upwards of $2,000,000). It is a scalable business that has large fixed costs, small variable costs, and will take some time to get to profitablitity. Once, however, they reach profitability, each additional dollar will almost completely drop to the bottom line. These are the type of companies that reward the long-term, patient investor.
Brett |
