RE:SummaryDid i mist something where do you see a 3 years contract to me it is for 2017 the revenu.
DIAGNOS signs new contract valued at $ 4.16 Million USD (5.26 Million CAD) with the Government of Mexico at ISSSTE to screen and monitor 320,000 diabetics in 2017 further to a successful pilot program. The response to the $5.3M contract by the market was muted and it initially left us perplexed.
However, looking back, there are a few factors that potentially account it:
1. The contract details - $5.3M for a 3 year contract. If you amortized the revenue for the period, it's roughly $1.75M per year. While it is welcome revenue, the contract fall short of making the company instantly profitable. For FY2016, ADK.V showed a $5M loss and reported a $32M debt.