Is the presentation one of the reasons for the share price? I compared the August 2016 and yesterday's Corporate Presentations.
Here are some key numbers.
The latest one is much less over the top wildly optimistic. AR and VR numbers are highter, but it's not clear what the numbers represent. Is it HMDs only or all hardware and possibly software. Certainly you can't draw any conclusions on what the value of tethered cables or S7's share of those cables might be. But if we accept the CEO's suggestion of sales doubling each year that would give us $20 mill in 2017, $40 million in 2018 and $160 mill in 2019. That would be great, but i don't know how much one can count on that at this stage.
For data centers, in the summer the figure of $128 billion probably included all equipment wheras yesterday's $4.2 billion figure for 2019 was for the value of OPTICAL interconnects. Since S7 claims that its cables are 65% cheaper, the maximum value of S7's potential revenues is some portion of 35% of the $4.2 Billion number or a part of around $1.5 billion in 2019. Now that's a pretty good number but S7 will only get some poart of that. If it's 10%, which matches the doubiing of revenues each year by 2019) that's still pretty good at $150 million. But will it be more or less? We may get an idea in the second half of 2017.
As for the other three markets: Drone Tech, High End Displays and Wearable Tech for some reason the latest presentation made no mention of expected revenues or "market opportunity" for them.
Let's hope we get some clarification at the next financial report or some news release in the next month or two.
| Comparison of August 2016 and December 2016 Presentations |
| | August | August | December | December |
| | Value B | By Year | Value | Year |
| Virtual Realtiy | 30 | 2020 | 33.6 | By 2020 |
| Augmented Reality | 120 | 2020 | 162 | By 2020 |
| Data Centers | 128 | 2016 | 4.2 * | IN 2019 |
| Drone Tech | 5.5 | 2020 | - | |
| High End Display | 30.4 | 2020 | - | |
| Wearable Tech | 11.6 | 2020 | - | |
| | | | | |
| | * Value of optical interconnects |