ABABCUS
First of all, I think Walter Ramsley, the analyst, is right on with his projection of $.87 for the fiscal yr. end Sept '99. He is probably conservative as GPTX management tends to lean that way. I visited the factory last month and efficiencies of product flow were impressive. To put it simply, 'they run a tight ship!'
Secondly, imho, Abacus is significant because it shows that GPTX is no longer a validator OEM...They are now in the business of cash and payment management for anyone that handles receipts. This should change the premium that the EPS Ratio and capitalization command.
The product that GPTX and Abacus tested could revolutionize the way cash is handled. In a retail environment, like in a Sears or a grocery store, money goes from a customer into a register. If the register gets full, money is counted and sent to central area where it is counted, sorted and sent to the bank where it is counted again and finally credited to the merchant. (very inefficient)
Imagine the cashier having an Abacus validator next to her register, or part of the register. When the cashier has excess cash, the Abacus reads the currency, detects what denomination the bill, and makes sure it is real, and counts the bill. The bill drops in to a bag that when it is removed it is sealed to prevent tampering. The $ count for each bag is electronically sent to the bank. The bank credits the merchant sooner because the cash is handled more efficiently.
Essentially, GPTX will be able to offer the retail market a "cash handling system" the should allow retailers to discover new dimensions of security, control, accuracy, and speed.
Finally, IMHO the abacus product will not be significant until Q1 calendar 2000. In the meantime I think the transition from an OEM to a company that offers "cash handling system" should be interesting. |
