Just a couple comments on yesterday's press. Recall Racom's Q1 10Q, They indicated they'd be focusing on OEMs. This is the first OEM announced since they made that statement. Let's hope others are in the works.
These OEMs will be important in carrying Racom through Q4. I believe the Hitachi license will carry Q2, which we will find out shortly. I'm guessing revenues will come in between $1.1 and $1.3 million, unless they have some surprises for us. Another license will carry Q3. I understand a company is lined up, but I don't know with whom.
I don't know much about Access Control. However, they did mention laundry. There is big money to be made in laundry. Here's a tid bit on what Schlumberger has done with laundry smartcards, to wit:
INTERVIEW-Mac-Gray CEO sees 20-25 pct growth (NASDAQ:WDRY)
NEW YORK, July 8 (Reuters) - Mac-Gray Corp.'s earnings per share for 1998 are expected to meet analysts' growth expectations of 20 to 25 percent, Chairman and Chief Executive Officer Stewart MacDonald said on Wednesday.
Mac-Gray, which conducted its initial public offering in October at $11 a share, is a provider of coin operated laundry equipment, copier machines and refrigerators. Its main markets are college campuses and apartment buildings.
MacDonald said Mac-Gray, which reported first quarter proforma revenues of $28 million and net income of $1.9 million or $0.15 a share, is growing from adding college campuses to its service roster.
Also, new smart card technology for its washing machines, which was developed with Schlumberger Ltd. (SLB - news), has improved revenues 25 percent in upgraded machines, he said.
''We knew there would be an uptick, but we didn't know it would be as high as 25 percent,'' MacDonald said about the program started in April. Smart cards do not need as much investment in facilities that charge cards need, he said.
MacDonald specified Coinmach Laundry Corp. as a company that has bid up prices of acquisitions in the industry.
Coinmach, which had $324.9 million in annual sales and a loss of $14.9 million for the year ended March 31, was not immediately available for comment.
MacDonald said that the company is not presently interested in operating storefront laundromats, since it is a labor intensive business. The company does sell and lease equipment to them, but that produces lower margins than its other businesses. |
