FormerXBC Inc XEBEQ

Far far more importantly

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ZouZ's post about backlogs is bang on, and leads to a very interesting point.

Has everyone here noticed that analysts are highlighting order backlogs as an important indicator of companies' prospects?

Someone here made the very valid point that the service side of the business doesn't affect backlog numbers.
There is no backlog for the services such as maintenance revenues.

You can see in the breakdown of Revenues in the annual report on Sedar that support revenues grew from $28.5 million in 2020 to $58 million in 2021.

This division enjoys 35% gross margins.

It becomes readily apparent that service revenues and order backlog alone already position Xebec for 2022 revenues of $181.8 million, assuming no further orders, and no growth in services revenues. ( $58 million + $123.8 million )

Remember this from the recent management comments:

  "The number of outstanding quotes in the first two months of 2022 are more than double the number from the same period last year." 

Xebec did not recognized any revenues from Biostream sales last year.
Revenues will be reported as sales are completed.

Xebec is still in the process of completing the construction and delivery of biostream units for its first bulk order.
This accounts for the increase reported in backlog.

Xebec has recently increased capacity for biostream units sixfold.

What do you think will happen to backlog when orders pick up?