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I am (as usual) confused. Where are people getting this $470,000 a quarter figure from? My understanding from the CC/report was that 7 million dollars would be spread out over the 5 year life of the contract. 5 years equals 20 quarters which equals $350,000/quarter. (Even if all 9 million were factored in, I get 450K, not 470). The other $2,000,000, I thought, would be paid as a royalty when the Inrange product starts shipping (or Ancor starts shipping to them).
Mind you, while I woulda loved a quarter with big revenues, the market is forward looking (supposedly) and would know that it was kinda inflated. I agree with the idea that it's most important for Ancor to get the cash NOW rather than worry about the revenue. Face it, this deal is not gonna make ANCR go to 41 again. That said, I swear I heard the Ancor team say that this deal had far greater potential than the $2 million already mentioned, and I'm surprised no one is focused on that. I would assume that any additional revenues will be taken in the quarter product ships, not spread out over the life of the deal. This kinda looks to me like an OEM, but I could be wrong.
Anyway, as usual, I ask. . . am I missing something?
the freep |
