Spectra 7 - pros and consVR/AR/MR market
-Technology validated already in VR applications with many Tier 1's including Facebook
-new Sony Gaming/VR products set to launch for Christmas 2020, quite sizable revenues anticipated
ACC's for DC market
-only one known competitor in DC market for ACC's, Credo, bigger & better financed, but S7 technology seems to have edge based on thinner cabling & automatic "tuning" capabilities
-large and growing DC market, esp Hyper DC's, expecting 60 new Hyper DC's each year for next handful of years, this translates to $162 million each year based on $15 ASP, and that ASP will rise as speeds rise (slide link)
-Molex S7 product rollout timeline shows S7 products for higher speeds that Hyper DC's will be using just finishing Sampling and going into Production late 2020 early 2021 (slide link)
-S7 ACC's provide huge cost/power savings (slide link)
-large and growing backlog of 73 Design wins already point to coming DC revenues
-Tencent Consortium formed June 2019, now Alibaba White Paper confirms that these two companies along with others will be deploying S7 ACC's in new Hyper DC's, expectation for N/A Tier 1's Facebook, Google, Amazon, etc to make similar endorsements to use S7 ACC's in their new Hyper DC's
-Partnered with many world's largest Tier Cable Distributors such as Molex, Foxconn, Leoni, Luxshare, etc
-2021 "Direct Market" for S7 projected to be $200 million
General
-seasoned CEO, prior success with Mindspeed
-High Gross Margins in the range of 60% expected
-Fab Light Business Model
-Large Patent Portfolio
-Cash woes, working to restructure Debt with ABL and O/T Patent Financings, believe the Alibaba confirmation along with Tencent having formed a Consortium with S7 should provide clear road ahead operationally to secure the needed Financing
-Supply Chain woes, caused by cv19 late 2019 and well into 2020, hopefully will be lessening factor going forward
Valuation
-with PPS at .05 CAD it is approx $27 million using 550 million shares O/S, I believe that given the $200 million "Direct Market" opportunity for S7, that a reasonable current valuation of up to $100 million is reasonable, this would equate to somewhere around .20 today