This article sounds like Harris or Comark "hired" the writer!!!
Mancuso said the deal
is the first step in a plan that could lead to a public financing
round next year and could culminate in a sale of the company in a few
years.
"Over time, we could be acquired by a major player," Mancuso
said. "I think that could happen in the next five years."
I don't think that this should be construed that the company is on the block. I think that Mancuso was referring to the possibility that if the company is successful in the next few years, the stock price will be considerably higher than it is now and the company may appear to be an attractive candidate for someone because of their marketplace position with more digital sales forthcoming.
With literally hundreds of transmitter contracts up for grabs
over the next few years, it will take a strong organization to meet
the demand.
The implication is that Acro might not be a strong org. It might not, but I am betting on the other outcome.
"(Mancuso) has to show that he has the financial strength to
execute, say, five transmission orders at nce," Jansen said. "While
he's at the size he's at, probably $14 million a year, he's bleeding.
If he gets a $3 million order that needs to be completed in 60 days,
he won't be able to fill it."
???? Depending on the size, five transmitter (sic) orders at once could be in the order of $2-4mm. The turn rate is not that long. Lets say 4 weeks. That turn rate, at current production utilization generates $24-48mm in sales. If the orders are coming in on a regular flow, I am sure there will be capital devoted to an increase in manufacturing capacity. Why, BTW, would he not be able to fill a $3mm for completion in 60 days anyways?
What is the source and basis for this analysis;- Mancuso, or the internally contradictory content of the article?
Mancuso said Acrodyne will stick with the Diacrode for its tube
transmitters because he doesn't want the company to be an also-ran in
the IOT space.
Makes you think that Acro wants into the IOT market. So how come they spent all their money and time on diacrode and tetrode?
He added that he doesn't expect to become a market leader in high-power systems.
This is a head scratcher. Doesn't expect to become the market leader tomorrow with Harris and Comark owning 90% makes reasonable sense. The way the article is written it sounds as if there is little hope of getting anywhere near 30%, which would be just terrific for us, and which is not an unreasonable longer term goal. |
