Highlights from Q3 that should translate to a good Q4
The Company continued its steady progress with our fourth consecutive quarter of revenue growth and we followed up last quarters strong order booking with another excellent quarter; positioning the Company for accelerated revenue growth in the fourth quarter, stated Tracy Rees, Chief Executive Officer, Intrinsyc Technologies Corporation. As a reminder, in the second quarter we received an order valued at $2,990,000 for memory components, which are planned for use in building computing modules for a Global 500 company. Revenue from the sale of memory components will be in approximately even installments in Q4 of 2017, and Q1 and Q2 of 2018. The Company is also garnering strong interest from recently introduced products and has additional products in the pipeline that will serve as a catalyst for growth, added Rees. Quarterly Business Highlights The Company increased design and production wins for Open-Q computing modules from 42 to 44 and 18 to 19, respectively, during the quarter. Design and production wins are important metrics to track progress in building Intrinsycs business with scalable repeat revenue. Received an order, from an existing client, that is valued at US$916,000. The non-cancellable order incorporates memory purchased by the client under a previous order valued at US$100,000, resulting in a net value of US$816,000. This order is expected to ship in the fourth quarter. Received orders that are in aggregate valued at US$623,000. One order is from a medical device company that plans to use a next-generation design of the Companys Open-Q embedded computing modules, currently in development; and the second order is for the development of a custom designed embedded computing module. The second order includes a provision for a per-unit royalty fee as the client ships their product. Product development services are expected to be completed in 2017. Ken Tough, Director of Engineering Services at Intrinsyc, wrote a blog: https://www.intrinsyc.com/future-wearables-open-q-2100/, The Future of Wearables In this blog Ken addresses the technical challenges in the wearables market and how Intrinsycs Open-Q 2100 platform, is the ideal platform for small form factor wearables; such as smart watches, fitness trackers, elderly and kid trackers, and more. The wearable computing market is forecasted to be worth over $34 billion by 2020, by CCS Insight in their February 2016 Global Wearable Forecast. Intrinsyc launched its first development kit and System on Module (SOM), the Open-Q 2100, to target the wearable computing market in the second quarter. By July, the Company received its first design win for use in a pet tracking device. Intrinsyc expects to start shipping modules for commercial products beginning in the first quarter, 2018. Announced the availability of the Open-Q 626 System on Module (SOM) and Development Kit and signed its first agreement for product development services based on this module. The Open-Q 626 is ideal for connected camera devices and the trend toward putting more computing power in devices near the edges of networks, like sensor modules and gateways. Higher processing power in IoT devices is less expensive because filtering and analytics where the data is collected can reduce communications costs, and it enables faster decisions, rather than waiting for computations and analytics to take place in the cloud. Received approval from the TSX regarding the notice filed by the Company to establish a normal course issuer bid (NCIB) program to purchase, for cancellation, up to 500,000 common shares or approximately 2.4% of Intrinsycs issued and outstanding common shares, as at September 21, 2017. The NCIB program commenced on October 4, 2017 and will terminate on October 3, 2018, or on such earlier date as the Company may complete its purchases pursuant to a Notice of Intention filed with the TSX. To date, the Company has purchased and cancelled 90,000 common shares for CDN$146,528.