Sean's Response to two questionsHello Sean,
There is considerable confusion over Spectra7's reporting of revenues ($2.5 million) and acconts receivables. (AR) ($2.6 million).
I understand this to mean that they received $2.5 mill. in payments for products sold and also had sales of $2.6 for which they have not yet received payment. Is this correct and if it's not could you please clarify the meaning of revenues and AR for me?
From Sean:
Tt is correct.
Hello Sean,
One more question. What exactly does a design-in signify. I understand it to mean that S7 and a company agree on the design elements and the actual dresign for a product that meets a customer's requirements. Again, as I understand it, a desing in may not have any orders associated with it, but may result in future orders.
From Sean:
Once again you are correct. Generally, a design-in means the customer and S7 have agreed on the design, which includes S7 technology. The best way to think of this is an example with a company like Oculus.
Oculus released the DK1 – there would have been a number of design-ins by several suppliers for this early stage developer product
Oculus released the DK2 – once again several companies with design-ins. This is a more sophisticated, but still limited quantity device again for developers – but silll low volumes
Oculus released the Rift – a consumer-ready product – this could result in high volumes and significant revenues for all companies included in this product.
As you can imagine we are in the very early stages of VR and AR and so these design-ins can take time to turn into revenue and some companies may not even make it to commercial products – the frequency of design-in is a good indicator that there are commercial applications for the technology being worked on in the industry.
I hope this helps,