Spectra7 Microsystems Inc V.SEV

A reminder - notes from the June AGM

[Pokerchamp]

AGM Report – June 16
 
The meeting was held in a large boardroom with some thirty people in attendance.  Ten to fifteen appeared to be S7 board members and senior management.  There were some half dozen imvestors and the rest support people/lawyers etc.
 
Ron Pasek did introductions, talked about the shock of Tony’s passing and quickly dealt with business matters. 
 
An increase in share options were approved to go from around 6.75 million to 8.75 million shares.  Perhaps this was to accommodate the new CEO.
 
The search is proceeding for a new CEO.  To be in place within sixty to ninety days.  They are very impressed with the quality of people available.
 
They were not going to talk about revenues or provide guiedance.
 
The formal part of the meeting closed with a brief presentation covering the first few pages of the Corporate Presentation.  Staff numbers updated to 50 people.
 
Cynthia Cole (I think) then opened the meeting to questions.  (People spoke softly and my hearing is not the best so I may have missed some things.)
 
Patents:  All of Tony’s patents belong to S7
 
Gauge Changer: Everything proceeding on schedle.  The company is very excited about its prospects.  After the meeting talking to a  couple of S7  and related people, it appears that revenues will start to roll in in the fourth quarter and grow next year.
 
VR market: Proceeding as expected – company very bullish.
 
Financing: No current need for funds and based on after-meeting chats may not need any more funding if break even happens this year as expected.
 
Margins: Not expecting lower margins from competitive pressures.
 
After meeting discussions with S7-related people.
 

1. They’ll stop issuing interim financials but will strive to get financials out within four weeks or less of quarter end.

2. Although Tony will be missed and he was key to establishing the company, setting the vision and dealing with Bay Street (financing) matters, that is less important now and what they now need is someone strong on operations.  The new CEO could make S7 even stronger.

3. Seems that the transition will go smoothly - customers are going to continue to be well served and the strong management team and board will keep things on track until the new CEO takes over.  I left feeling reassured that the company will continue to grow, deliver and more than meet analyst targets of $1.15 in a year.