Post by
Ciao on Apr 09, 2024 5:46pm
LD Micro Presentation
It served it's purpose to give an introduciton to potential new investors. There wasn't anything in the presentation that most of us have not already heard.
There was a revenue breakdown for K-12 market vs. transist at $18M vs. $10M in 2024, Margins are about the same. The growth will come from the K-12 market (hardware upgrade and PaaS) and recurring rev has gross margins of 70%.
Beyond being spec'ed for camera systems in Alstom, CRRC, there is a 3rd one.
Let's see if we move from the discovery cycle beyond retail investors and get institutions interested. Money Mark believes so. Looking forward to his insight this Friday given he had a 1 on 1 with Doug today.
Comment by
PKwild on Apr 09, 2024 6:07pm
I was intrigued when I heard the project funnel for transit is approximately 100m. The potential for that to increase with with Alstrom is also very interesting
Comment by
davewho on Apr 10, 2024 1:51pm
DD I seem to recall during his presentation yesterday mentioned that Q2 would be out in a couple weeks. Why did he say that? He didn't have to say that. Was it a hint for those who were listening? If Q2 was not going to be good then why mention it at all?
Comment by
davewho on Apr 10, 2024 3:16pm
they got that LA contract by taking a haircut and having to match GSI's price proposal. That in itself is telling about how close GSI came to actually getting it. IMO
Comment by
Ciao on Apr 10, 2024 3:23pm
Yes, forgot about that...lol. Deep pockets like Bus Patrol, companies that can afford to lose $$$
Comment by
sjlpc123 on Apr 10, 2024 3:51pm
how do you know they took a haircut?
Comment by
davewho on Apr 10, 2024 3:56pm
the bids were made public after it was awarded.
Comment by
RJunior22 on Apr 10, 2024 4:32pm
In the end GSI still lost out. I recall another large contract last year the company lost out to Zdaas by a measly 24 thousand dollars. There was also talk at the time that since Zdaas was an IT company, the hardware would come from GSI. We never heard anything further. I wonder if it isn’t be better sometimes to make a smaller profit in order to win the contract.
Comment by
Ciao on Apr 10, 2024 4:37pm
Not quite. ZDAAS purchased GSI's equipment and likely lost money on that contract given SEPTA saved (if I recall correctly) only about $20K. Doug had to twist ZDAAS and protect GSI with favourable terms for the purchase of GSI equipment.
Comment by
RJunior22 on Apr 10, 2024 4:40pm
Thank you for the additional information.
Comment by
davewho on Apr 10, 2024 4:57pm
Doug said years ago he would never chase contracts just for the sake of getting the contract. He believes if you build the best product available customers will buy it and sooner or later your competition will take notice and have to buy you out. Thats his game plan and as far as I know it hasn't changed.
Comment by
Ciao on Apr 10, 2024 9:14pm
Yeah, not anytime soon as the share price would have to be closer to $7 before a bid comes in at $10 to get close to the $1B valuation. If I recall correctly, Silent Witness had rev of about $60M before it was taken over.
Comment by
RJunior22 on Apr 11, 2024 11:55am
I came across the following information about Silent Witness regarding the year ended July 1998 prior to be taken over: Revenue - 21,689,607 EBIT - 3,532,476 Net Income - 2,221,907 Basic EPS - 0.41 Assuming this is correct, the diffrence could be the lower number of shares issued. Unfortunately I could not find this information for Silent Witness.
Comment by
Ciao on Apr 11, 2024 12:11pm
Oct 15, 2003 — The price for Silent Witness, based in Surrey, B.C., is $11.27 a share, 55 per cent above Friday's close of $7.25. The takeover was announced ... Silent Witness, founded in 1986 and based in British Columbia, has annual worldwide sales of approximately $56 million and employs about 165 people.
Comment by
RJunior22 on Apr 11, 2024 12:46pm
This makes more sense. I don't know what the 1998 takeover was all about.
Comment by
Daudau11 on Apr 10, 2024 9:13pm
Hi Ciao, How did you re-watch the conference presentation? I missed it and I want to watch it but I can't find it on the LD Micro website. Thank you.
Comment by
Ciao on Apr 10, 2024 9:16pm
Hey Daudau11, I recorded it (using Free Cam 8) while I was watching it.
Comment by
Daudau11 on Apr 10, 2024 9:20pm
o ok haha, thanks for quick response. I thought they would post the presentation on LD Micro Website but so far nothing... o well. Thanks for the recap.
Comment by
Ciao on Apr 10, 2024 9:23pm
There was an option during the live presentation to watch on YT, so it could get uploaded. There are some LD Micro presentations from the Oct. 2023 event avail on YT.