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Technologies Sonomax Inc SXHHF

Sonomax Technologies Inc engages in the development, commercialization and sales of intra-ear technology for earphones, hearing protection, hearing enhancement, and other communication applications.


GREY:SXHHF - Post by User

Bullboard Posts
Comment by commissionson Apr 18, 2012 11:32am
207 Views
Post# 19807566

RE: OEM

RE: OEM

I think you need to reread the release,

Says ' material OEM' , 'important contractual minimums over a 24 month period', and 'openning order of 5000 units'

IT is obvious the company is not at liberty to disclose the contractually agreed unit numbers for the contract - based on the wording of the this release - which is not unusual -however we can speculate

Here's what this tells me:

First off Altec Lansing is a world renouned name and is a $600 million plus company - where their base focus is sound'.

The OPENNING ORDER is for 5000 units - obviously a % of the total order - which is CONTRACTUALLY guaranteed based on the release. My speculation is the inital order is probably 5% or 10% of the total agreed upon order.. My guess would be one of those 2 figures because its over 24 months - the word MATERIAL when used in a news release usually refers to something significant - and 5000 units in my mind is not anywhere near significant - especially when the time frame is 24 months.

Lets assume it represents 5% - and they must be selling them for at least $75 unit - that would value the deal at $7.5 million - which would be a fantastic initial contract - even half of that. We know they are talking to numerous OEM's and ODM's - I believe its the tip of the iceberg.

But due to obvious contract contraints with the company as indicated with the careful wording of the release - the sales will turn up in the financials. However if they sign another deal with an OEM  - and there are numbers then we can come back to this deal and surmise that it would be written similarily .

Maybe someone can contact the company and get some further clarification.

 

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