RE:Q2Revenue numbers came in about as expected but I'm quite surprised how low gross margins were especially considering the high number we saw last quarter and managements comments about looking at key metrics of the business to see how it's progressing. So I'm hoping management spends time explaining what investors should expect as the gross margin run-rate for the company going forward becuase going from 50%+ to just above 40% is a big change and drove a significant portion of earnings losses.
Cash burn continues now with just under $15mm in the bank. Hopefully management can provide some guidance as to when the burn will stop and breakeven/profitability will be achieved.
M&A opportunities - Would be great to hear some comments about acquisitioni targets and/or suitors that have approached AJX and been turned down or defered.
Kubota - Hopefully they can give a sense as to what the settlment will do for the company financially and if its material or if its just another quiver in the bow (not material, just somewhat additive).
Claas - This is the third quarter in a row where EMEA sales are essentially non existent and its obvious now that the BPO accounted for almost all segment sales. Claas, like other OEMs, has had to ramp down production so I get that but could the lack of EMEA sales in its entirety mean that Claas is removing themselves as a customer of AJX permanantely? Yes there is a new contract in the works but its August now and no new deal has been announced so perhaps the relationship with Claas will end.
Large Asia OEM (migh be Kubota) - Management said "stay tuned" about an announcement occuring in a few months last conference call. I was hoping this might be Mahindra related but all is quiet on that front. Perhaps its Kubota or potentially yet another OEM.
Wheelman - They should be able to give us disclosure regarding number of units sold, growth rate, and materiality of the business.
Stara/Agleader/Other OEMs - We seldom hear about Stara these days from AJX. How are they doing? Are they still a meaningful part of the business? What about the AgLeader relationoship?
2021 Ramp - Should investors take managements comments about OEM reduced R&D budgets and project delays as meaning 2021 will no longer be the explosive year that investors were promissed by DV a few conference calls ago?