RE:RE:RE:Excellent NR...1320racing wrote: Hate to burst your balloons but keep in mind the TLC-2000 has been developed to increase revenue not to maintain the million or so dollars the TLC-1000 brought in. It would be logical to expect they will target TLC-1000 owners first but it remains to be seen how many of those feel the 1000 is good enough for their business and not wish to upgrade just yet. The launch will not be a factor affecting the sp but the market's fund managers will be scrutinizing their quarterlies to see how sales are progressing. It's still too early to tell but I'm sure it won't stop the pumpers from making it a runaway success in the early going.
I don't have any ballons? Agreed regarding TLC2000 traction,,, significant TLC2000 sales are a long time away.... the next few quarterlies will not be impressive.... The new revenue model, the new TLC2000 technical advantages, the concept of a therapy network... full support, training and establishing a brand while cold laser itself emerges as the future of insurance covered pain management are all things to keep an eye on. Exciting times. Most of us are interested in the next couple years on both divisions... it's more about the future/potential.... and we'd guage our position size based on either lack of confidence or confidence gained over these future years. If TLT as a whole, in it's speculative state gains some interest from fund managers, great, if not, that is fine too. There is a lot of time ahead of us for things to unfold.
See below discussion:
15 units a month at 70% profit margin is believed possible to support most of TLT's monthly burn rate for both divisions. Most of us would be more than happy with that. I believe 15 units a month will be a piece of cake. 800 Canadian customers, 400 US customers... when approvals are in, and with the new sales force... just 15 units a month will cover burn. That's conservative and pretty easy to take a guess at.... that it won't be a problem other then the fact that it will be delayed. They have enough cash for 6 to 8 months so it shouldn't be an issue... unless you have other data or don't believe they'd sell or upgrade 15 units?
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Here is a good conlsusion to the topic of TLC2000 sales from Cory Fleck:
- Current burn rate is between 100k and 125k / month – this includes both divisions
- This amount could rise to 150k/month as the cancer research ramps up in preparation for the clinical trials
- The new TLC-2000 will sell for $15,000 with a profit margin of 75%
- Cash as at June 30th, 2014 was 2,808,047. We can assume the cash position in mid November 2014 is $2.1 Million.
"After chatting to Roger White regarding the expected sales of the TLC 2000 he states that they hope to sell around 100 units in the first three months after hitting the market (which is roughly 33 units per month). For conservative sake we will use a lower figure of 15 units to run our numbers. We will also use a profit margin of 70% instead of 75%. Over my time investing, conservative estimates have never lead me astray.
If Theralase can sell 15 units a month at a 70% margin the company would generate $157,500/month. This number would cover the 150k/month of operating expenses and the continued cancer division research.
As I stated above, the therapeutic division provides a base to the stock price. We should not expect booming sales of the TLC-2000 to catch investor’s eyes. Rather, strong sales will further result in a steady stream of cash entering the company to offset the costs of starting the cancer trails."