FormerXBC Inc XEBEQ

RE:RE:RE:RE:RE:RE:3 things in Greenlane's release that make Xebec look better

[catchascatchcan]

Often times yes, depending on Terms and Conditions.  But from an operations perspective, there is much greater value in putting equipment back in operation ASAP, and at cost, rather than leaving it off-line while warranty work is scheduled.  It's a simple cost benefit analysis, and it's extremely rare that warranty work is the route taken.  Barring massive mechanical failure of major components of course, but with quality providers, this is very uncommon.  

Gann999 wrote: Sure but will that result in voiding any warranty?

catchascatchcan wrote: In fairness, many companies will opt to farm out maintenance to a potentially cheaper provider.  Manufacting and maintenance are two seperate animals.  While both GRN and XBC would aspir to lock in long term maintenance contracts, it's not uncommon for industry to shop the service.  While few people might manufacture a system, it's very common that many people can maintain one.  Quality systems are made to be easily maintainable, which is a blessing and a curse for this reason.  I speak from experience.  The only manufacturer that I religiously use for both is Honeywell, or as I refer to them Moneywell, as their systems and controllers are highly specialized, and designed in a way to effectively lock you in.  But even with such an outfit there are options.  Long story to say that their maintenance revenue will not a straight-line to their system sales.  Anyone can contract millwrights, boilermakers, electricians etc to maintain the units once they're in operation.  Same will apply to XBC.  Just food for though.

Ciao wrote: If you look at the lack of growth in service and support, that is likely an indication of customer attrition given system sales have gone up 3 fold and service and support was stagnant

kulewater wrote: A litle bit suspect there. Looks like they got out over there skis a bit too much.

the contract with RNGC was amended to reduce the scope of supply from three systems to one, because two of the systems were sold in the quarter to another customer for US$3.0 million

Sounds like they werent too sure the customer would be able to pay for the 3 systems so they sold 2 to someone else.

The margins seem razor thin for GRN. Not sure how they are going to change that being a VAR.

Customer attrition is a real thing as these businesses mature.