Vicon Industries ( VII ) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Vicon Industries ( VII )

VII 0.206

-24.6%

Jul 11 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Tim Oliver who wrote (10)	2/5/1998 5:04:00 PM
From: Hank	Read Replies (1) of 118

The postal contract gives VII sole supplier status for any US Postal facility during the period from 7/97-7/98 with the option for the US Postal service to renew the contract on a year to year basis (taken from info on Vicon's web page). Consequently, this is not a contract for just 3 or 4 facilities but any facility. I am assuming that the bulk of the profits have not been realized from this contract yet because the earnings did not appreciably accelerate during Q4 of last year (18cts Q3 vs 20cts Q4) and the 10K states that no account drew more than 10% of their business during 1997. One would assume that a government contract such as this would result in a significantly greater increase in earnings than what was seen in Q4. Yet, the back log of unfilled orders for 1998 as of 12/21/97 was $8.7 million. Most companies do not count profits from sales in a quarterly report until the order has been filled and payment has ben collected, so this may explain this. It is probably true that Q1 did start to show some of the revenues from this contract given the huge increase in earnings over Q4 1997. So, I may have been hasty in making the assumption that we haven't seen any revenues from this contract yet but the potential for a long and profitable relationship is obviously there. However, it is hard to know for certain how much of the earnings increase was really due to the Postal contract versus increases elsewhere domestically and overseas. Their Q1 states that they experienced an increase in business in every area. Perhaps I will try to get ahold of an investor relations rep there who can directly answer some of these questions. Hank

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next