Evening Steve,
Sorry it took me so long to respond to your questions. I hopefully can provide you with suitable answers. I offer an open invitation to anyone else to add to, or correct, my statements. I have gleaned these answers from the investor's kit that I received from the company.
>>Does ADSN make a one time sale or is there an update/service component that can create an ongoing revenue stream from each customer?<<
Here is what the Professional Business Services sheet says . . .
"Phase 6: On-Going Maintenance and Support
Multi-level support program allows users to tailor the types and amount of support they want to build into their contract to reflect their in house resources and budget constraints."
Here is an excerpt from the ATLink brochure . . .
"ASI then supports you with a planned service offering that recognizes that different organizations will need different levels of support during the life cycle of their installations. We begin with 24 x 7 support, scaling back as your people take "ownership" of the installation. As your support needs decrease, so do your maintenance and contract costs. This flexibility provides you with the best overall cost that matches your real needs."
Now, my comments . . . I recall reviewing the on-going maintenance contracts of some of the Tech and Software firms that supplied our company. I was taken aback at the amount of ongoing revenue these vendors generated from providing us with access to their help desk, and application maintenance teams. Our rationale was that even though it was a significant ongoing cost, it was more cost effective for us to do that than having to hire, train, pay all the salary / benefits, arrange for coverage for holidays, etc. I would not be surprised if ASI was taking in considerably more than $100,000 per quarter for this service. It was interesting that as our suppliers added more clients, their economies of scale kicked in and the service they provided became a growing profit centre for them. Now hold that thought, and think how well ASI's client list is growing.
So Steve, that was the long answer to your question. The short answer is "yes"! But you probably know by now that I don't usually provide short answers. <ggg>
"If so, what percentage of the initial sale is is the annual ongoing revenue?
I am not sure. I am sure it depends on the level of service that a customer opts for. And thinking about this a bit more, for competitive reasons, I really don't know if ASI would want to make that public. Would be nice to know though.
>>How many shares in the float?<<
There are approximately 3 to 4 million shares in the float.
There are under 12 million issued and outstanding shares.
The fully diluted count is around 18 million, but this includes long term employee options (3 to 4 years out), and expensive warrants that probably won't be exercised.
>>If ADSN did .03/share in the first qtr. and their sales are growing...this would indicate about $0.20 for the year. This would mean that we own a rapidly growing tech stock at 5 times profits. Unheard of... it could be 40 times earnings...or $8.00/share. If they keep the progress up we have a real winner.<<
Yes, I agree wholeheartedly! I believe that this is indeed a real winner, and I am looking forward to their next quarterly statement! I can hardly wait till the Small Cap analysts take a look at this company. ASI's story seems to be getting bigger and better.
Crazy Canuk |
