RE:The tsunami is coming !Sorry for the delay in responding as I've been snowshoeing this afternoon and just had supper.
to add a bit of perspective I thought I'd copy a section of a press release from August 29, 2014 highlighting the 2nd qtr results; sound familiar?
Outlook
2014 continues to prove itself to be the "tipping point year" for PyroGenesis as the full effects of the Company's strategic plan to position itself in new high margin niche markets are being realized.
6 month Revenues-to-date, although only 11% higher than the same period last year, are supported by a record backlog of signed contracts which are already more than 300% of 2013 revenues (which already were a 175% increase over 2012 revenues) and which are all expected to be completed over the next 18 months. Despite recent delays associated with certain project commencements, management still expects to post strong year over year revenues while maintaining its historic strong gross margins.
This progress has largely been due to the Company's successful repositioning itself in answer to the fiscal crisis confronting its largest client at the time; the US military. Under the direction of the Board, the Company has successfully transitioned from being a company predominately supplying waste management plasma processes to the US military to one that is supplying plasma processes to not only the military but also to the Oil and Gas as well as the Mining & Metallurgical and3DPrintingindustries. IneachcasetheCompanyhastargetedhighmarginnichebusinesseswiththepotentialforsignificantrepeatorders.PyroGenesis' recent success within the 3D printing industry wherein the Company announced that they had signed a $12.5 MM contract to provide 10 plasma based systems to produce the smallest, and most uniform spherical Titanium powders to the industry, is just one of the many successes of this repositioning strategy. The Company expects many more of such contracts to be signed over the near term.
The Company continues to implement measures to strengthen and focus its business development department, which includes, amongst other measures, hiring additional strategically focused professionals. The professionals focusing exclusively on business development has increased from 1.5 employees 18 months ago to 7 today.
The Company continues to de-risk its business model by starting to require recurring revenue features within sales agreements. Management has targeted 2016- 2017 as the time frame in which the Company will be profitable from recurring revenues alone.
In conclusion, Management is confident that the strategic plan adopted by the Board which has given effect to the repositioning of the Company's business, has proven to be a success and Management expects that this success will continue and be improved upon into the foreseeable future.