OTCPK:RKNLF - Post by User
Comment by
west12on Mar 03, 2017 10:52am
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Post# 25926664
RE:RE:RE:Amazing could
RE:RE:RE:Amazing could FACTSR: I'm not an accountant but the only way a vendor like RKN makes money is by;
1. getting new clients on their system (probably negligible or zero upfront money)
2. regular usage charges from clients using the system for account and transaction management, billing, etc.
3. many times existing clietns will want to customize the system - this usually is a source of revenue for RKN...I suspect this is the backlog rather than new clients waiting to get on board.
Of these, #2 is the base of their revenue pyramid... once they land a client, the client should be a steady source of recurring revenue which is usually billed monthly.
#1 is going to be few and far in between...with this business, a new client is not going to pay a lump sum when they sign a contract...they may pay for some system migration costs - but that would be negligible.
RKN may be playing with statistics with the statement that you mentioned.