RE: $1 million in year-end licensing revenues?Aw shucks, Darbygirl, I am flattered.
Given the different business models, when we look at numbers, we’re really comparing apples and oranges, gross and net, and the growing international business might look puny in comparison to existing sales. So I took some of the report numbers and got out my calculator, and figured this out another way.
[In UAE], VendTek receives a small fee per transaction and generates on average $40k to $60k per month in revenue, which VendTek expects to grow in upcoming years. Source: Cormark Report, page 83
As the Company acquires a greater portion of its revenue from software licensing in international
markets, earnings should accelerate because gross margins in that business are over 90%. Source: Jennings report, page 8
…these revenues carry near 100% gross margins, we expect margins to expand as these revenues continue to grow Source: Coremark report, page 80.
So if we use the April 07 figures, and the numbers in the middle say $50K/month @ 95% gross margins, then sales would have been about $1 Million per month at that point in time. It’s now December, so we might be safe to assume 35% growth since then…that would put sales at $1.35 Million monthly, or $16.2 Million annually, in the UAE.
Now, if we used your calculations and the same equation worked, $1 MM in OVERALL lisencing revenues would result from ….$20 MM in gross sales…? Is that it?
That would seem to be in line with the numbers I have worked out?
Gladys