RE:Conversation with Marshall GunterArbourmark wrote: On Friday I shared a few highlights of my conversation with Marshall Gunter, CEO of DM
AI Highlights:
I believe they will be signing more contracts in the near future and in particular a very large one. The edition of Ed Choi previously from Lotte Corporation was a brilliant addition to the team and has already paid off for the company. This will continue to open many Asian doors for the company and he has a very big Rolodex list of corporate contacts that will require DM services.
I believe we will see a huge annual contract with a very large company with a $500B market cap in the not so distant future.
I believe they will be successful with US Airforce Cybercommand, the next phase is the software is being tested in Texas as we speak. The US military will not only be testing the software but also analyzing if DM can support the size of contract they are requiring.
They are also in a vetting clearance process with US Government/military that will approve them as a preferred vendor with other US government agencies.
I got the impression that Canadian government and Canadian military are in further negotiations with them as we speak and additional contracts could be awarded.
We discussed ability to service huge AI contracts and he said he currently has 16 full time employees, if feels in 6-12 months they will double to 32 and they are actively hiring but he said if they land one particular AI contract they will increase to 60+ employees rapidly.
Covid-19 Test Highlights:
On the Covid testing sides there are many developments. They are in negotiations with one of the largest mining companies in the world to supply tests worldwide to various mines they operate.
They are in communication with various US states regarding covid-19 tests, one particular state is a pandemic hot spot. They have also even discussed testing with US military
I know on the boards many people question margins being made on test sales. Many speculate at about 5% profit margins. He simply chuckled and said that they are much higher and when next quarter financials are released, we will see this is highly profitable and great revenue stream for the company. He also pointed out that their average covid-19 test they sell is approximately $100 versus their competitors selling similar type tests at $160. He did point out that even at $100 per test they are making very healthy margins.
He said nobody knows how long Covid testing will last most likely 1-2 years but they will capitalize on this opportunity and this money will be used to fund AI growth. He also stated the company is very healthy now financially
They are also in negotiations with some very large entertainment companies who have been shut down and they need to produce new content and one professional sports league.
I believe many penny flippers expect daily contract news releases but when you are negotiating large contracts with governments or Billion dollar companies they have many approval channels to clear.
I know first-hand as my partner and I own 500,000 sq ft of tech space in Waterloo. We have Ford and Google as tenants. I know how long it took to negotiate long term leases with these huge companies. There are many levels that need review large purchases to obtain final approval.
Thanks for the post Arbourmark!! There's one thing, someone gas a question that makes sense if you have answer would be great: Thanks for posting...just a couple of questions on first pass. 1) DM reported 10,000 kits for $500K which included PCR machines, tubes & swabs, yet this post suggests $100 average? 2) Where are they recruiting?