I think profitability is not at issue, yet.
Let's first get some revenues.
I mean, it would be quite an achievement for this company to manage to pull in three million per year in revenue (which would be the equivalent of contract manufacturers and turnkey operations selling about 30 million of parts. I mean, for gosh sakes, this company hasn't had revenues of over 2 million per year in almost ten years (naturally, the coatings business revenue has no applicability, whatsoever, to the bulk glass business.
LQMT's future revenues are derivative and residual.
LQMT, frankly, has very little standing in relationship to its partners. Materion can sell ingots to virtually anyone and without restriction and will set their margins according to their normal margins. LQMT may derive some crumbs here.
The value added royalties will come from the contract manufacturers, none of which have been nominated, the in house turn key operations of select large customers who can afford such an operation, and some marginal revenues from R&D, which frankly, will probably be run at a loss due to the nature of LQMT always absorbing the costs of the mold-making to secure interest rather than passing it through to the customer.
I wrote my investment off as a total loss years ago.
I see nothing but more dilution ahead.
I like Hauck a lot, but he is saddled with lousy third rate management. The R&D staff is not seasoned, in any way, but his adding some of his previous staff will help. But the money we are spending on Steipp, Bromage, Chung, Ogawa, Salas, and Buchanan is PEE into the wind. If all of that money was spent on some competent and forceful leadership this company could turn on a dime. A wholesale turnover of the BOD, starting with playboy Abdi (short for ABDIcator of responsible direction) is terribly needed.
Steipp has placed a premium on maintaining the status quo of cronyism and loyalty over competence.
I wish Hauck had a seat on the board and was an officer of the company. Were Bromage to leave tomorrow, that would be a hell of a start, cause it would free up the slot which belongs to Hauck.
I think we could have ten million in sales revenue from the contract manufacturers level by end of 2015. But that would translate into revenue to LQMT, if we were lucky, to be about 1 million.
Until the contract manufacturers are selling 100 million per year, LQMT is not going to be making 10 million in revenue for the LQMT shareholders. I think your timetable is a bit too optimistic.
