To: Evan Dimmer who wrote (988 ) 1/20/1998 5:13:00 PM From: Jerome Hay Read Replies (1) | Respond to of 4539
Evan, you beat me to the draw.. i was going to type out the announcement..i had no http link to give everyone as i got this announcement from my bokerage firm directly to my pc... Anyway.. i would like to "understand" this better as well as the number crunching that hardrocker said he would do.. The way i looked at the deal with btc was.. ....O.K. , we are getting 1.5 million upfront, and 15% of royalties..but! if you took a "typical" agti fixed base unit before this deal was it "netting" 15% or more after all the expenses are put into the equation to market it, install it, service it, etc. etc.? It is great to "cut expenses", but did AGTI give itself enough room to grow for the future.. One thing that confused me when i spoke to Mr. sargent was.. he said that the revenue depended on how much use the machines had.. But it was my understanding that that was true with the max lite, not the fixed units.. i thought the fixed units were "rented" by the casinos on a per day basis, thus "how much they were used" would not matter to AGTI.. Do you get what i am saying? So... if say Agti got )this was my basic understanding) $6.00 per day per machine installed, how much of that $6.00 did Agti actually put in its pocket?? Now, with btc, it seems that AGTI will put approx..90cents in its pocket per machine (if the rental is in fact $6.00. Now on a "best case scenerio.. (actually a "very" best case scenerio) if BTC installs say 20 machines in EVERY on of its 170 halls..that would be 1,400 installations.. if my math is correct..1,400 installations times .90cents per day per machine..AGTI would make $1,260 per day.. Times say 365 days..that comes to $459,900 per year.. That is o.k. , i guess..as long as Agti makes good money on OTHER projects.. this $459,000 plus whatever money will be coming in from the units they already have in place (by the way i was told that BTC WILL get a piece of the monies coming in from machines already in place.. (i was told that BTC would not get "as much" as 85%, but it would be some percentage with BTC taking over the servicing of the machines...So it looks like maybe another coupla million from that coming in.. These numbers are extremely hard for me to guage.First of all. How many installations really will be in place in say 6 months? my estimate of 1,400 may be very low.. or it may be high or somewhere in between. Also, if BTC is going to be servicing all of agti's existing accounts.. , If those accounts want to try the hand held units.. how will agti handle that since BTC has it's TED unit??? these are all "CRITICAL" questions and they need to be addressed. If any of you have any insight into any of this it would be very appreciated if you posted your thoughts.. Finally, i have to be honest with everyone... AGTI really has to do everything right at this point..even to simply win back the investing community.. Therefore, my conclusion is... WHY not allow BTC to simply buy out the entire co. at a price that would benefit all concerned. If i am missing something, please let me know.. Is there outrageous potential out there for agti? Probably yes, but it seems that they are heading in the direction of being a software and distribution co. anyway.. Why not join forces with an established marketer with a presence in the marketplace and move on from there?? Just thinking out loud here? all responses are welcome.. As you can see my "edge" has diminished somewhat.. Only until i understand if these moves by Agti are "REALLY" in the stockholders (all of you reading this stuff) best interests..NUFF SAID!