RE:Still baffled by the rose coloured glasses..kulewater wrote: I used to be a shareholder. Divested over a year ago at a nice profit. Ever since Kevin took over the revenues have been backsliding as a result of less intake from major customers. Not sure how you can see this as anything but a decay in business health. Yes the margins are a bit better but thats a result of lower revenues and a shift to services. Anyone that thinks this is a good thing should ask themselves if they would rather have 1% of a billion or 100% of 1.
As far as Smart Edge goes they company really sold out shareholders that were being told this was the next great differentiator for PTG and would really boost earnings in the future. But guess what, they sold all that R&D and promise for $25M - thats peanuts. And its a one time event. Nobody is going to invest in the long term prospects of a company based on a one time event that will boost revenues for ONE QUARTER.
I have to disagree about your margin comment. Higher margins are always a sign of product value. Services is a way better business than straight up sales.
As to selling Smart Edge, I think the forecast for profitability was like $5M per year from Edge. Since PTG pays a 11% dividend, that $25M is the equivalent of 8 years of profitablility (at $5M per year). It also lowers dilution risk or financing risk that would be required to develop Edge further.
As to PTG getting recognized for Edge (Intel prize winner) and being a PPA (while not exclusive, they are the only PPA, so they will get references from Intel), you may see no value but from my experience these status are revenue generating at a premium. In my business, we have different level of partners (like Intel) and the preferred partners get a larger share of sales than the others.