Welcome!
It's good to see some interest finally.
Janice Benedict at IR is now Jan Mahoney. I believe the CFO, Dennis Mahoney, "aquired" her earlier this year.
As for the consumable number, look for a decline in the average dollar amount per purchaser because most of the installed base of printers are high volume DCS machines with a practical printing speed of 600 sq ft. per hour as opposed to the P5000 at 180 sq ft per hour (standard, real world print speed). Look for about 30% sequential quarterly growth in consumable revenue. In Q1 we had $2,781,000 in consumable revenue and in Q2 we had $3,670,000. BTW, does anyone know what gross profit margins are for consumables?
I have been looking around and feel that RGFX should use their lead on the new piezoelectric technology for their advantage. I would be happy with a loss in the coming quarters if they could get some new printers out for some other markets. A CAD machine would be nice and I have been seeing billboard printers (16+ feet in width) for more than half a million a pop and they print much slower than RGFXs printer and at a lower DPI (usually about 18-36 dpi). Check these out -
signtech.com
$653,000 for 18 (not 180, but 18) dpi at 300 sq/ft per hour. I don't see how RGFX couldn't use their P5000 heads and electronics with some media transport modifications to put together a similar, but faster and higher quality, printer for less than half.
Look for RGFX to eat up SIGTECH's market for their 5 foot printers -
signtech.com
Yes, the printer here does have a small advantage in width (6 inches) but once again, loses out in speed, dpi, and price. It shocks me to know that these printers are still selling when there are printers such as the P5000 that cost less than a third, are superior in every respect, and can be used for things other than distance viewed applications. RGFX needs to target the billboard market, among many others. Signtech does have some nice substrates and I think RGFX needs to spend a little more here because the more applications a printer can be used for, the larger the market.
I know a few people who work in the CAD markets and speed is a big factor here also. I think a 360 sq ft / hr piezo printer here wouldn't be a bad investment. What does everyone else think?
Darren |
