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Bullboard - Stock Discussion Forum Synodon Inc SYXXF

Synodon Inc. (Synodon) is a Canada-based company focused on providing aerial integrity management solutions for oil and gas pipeline operators. The Company has developed a remote gas sensing instrument called realSens that is capable of detecting ground-level hydrocarbon gas occurrences from an aircraft flying at an altitude of approximately 300 meters (approximately 1,000 feet). The instrument... see more

GREY:SYXXF - Post Discussion

Synodon Inc > Revenue Math
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Post by CHINVESTMENST on Oct 08, 2014 12:42pm

Revenue Math

Haven't seen it posted yet so why not take the liberties of solving what revenue should be aorund for Q4. Last Year we had revenues totalling $730,000 for Approximately 9,000 Km of pipeline monitoring. Not sure what the contracts incuded in this monitoring of pipelines so this will be an estimation. this year we already have obtained $780,000 in revenues. We're monitoring 27,000km of pipelines this year which means a proper estimation would be 3x $730,000 for the 2014 revenues. This is = $2,190,000 in Revenues (Approximately) for 2014. $2,190,000-$780,000= $1,410,000 in revenues to be obtained in Q4. Expenses have remained relatively stationary over the past set of years so let's make a prediction of expenses being $2,800,000 for the year of 2014. for the Q4 expenses will likely be around $1,000,000 maybe a tad more. This means that we have a $410,000 cusion to operate at an income in Q4. Now I don't know about you guys but this brings security to the fact that Synodon will for the first time be operating at an income, in its whole business lifetime. This is why I have no fear about the undevalued share price as I have calculated the risk and realized that the upswing from operating at a profit, is much greater then the downswing.

Picture the attention Synodon will get from larger corporations when they see them operating at a profit. This brings potential for merging and acquisitons. Any thoughts Stockhouse Board?
Comment by techiy on Oct 08, 2014 1:53pm
They will be close , but still be ending this year incurring loss. However, they will certainly be operating in profit in 2015, as they are increasing their customer base down south abd in Europe. They will grow really big in next one year, thats for sure. Growing involves some "Growth Pain". you did a nice work in math. Did you consider Q1 and Q2 revenues? We will see another ...more  
Comment by CHINVESTMENST on Oct 08, 2014 2:09pm
All revenues have been considered for 2014, and 2013 when I wrote up the revenue math. We're not going to be operating at a profit for the year of 2014 but the chances are stacked in our favour that we will operate at a profit for Q4. We'll be slightly in the negatives this year if my math is correct but it will be subtantially lower then previous years. If Q1 and Q2 gets as big as Q3 and ...more  
Comment by Boomerthecount1 on Oct 08, 2014 3:53pm
Well written post, but we must not forget one important thing - synodon name is well known by every CEO in the piping industry. I can tell you this with 100% certainty. With these new contracts the big pipeline company has dipped their toes into this technology. If synodon wants to have bigger contracts they have to show profibility and sustainability. The big company wants to have partners who ...more  
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