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82K, maybe a bit more after today's buy.
Thank you RStevens.
Another question with regards to Modern Round: Will Virtra equipment installs at Modern Round facilities be at standard profit margins. If "no", will equipment be installed at cost, something less, or in between normal margins and cost?
Thank you for taking the questions.
They do have a pretty easy comparison at $1.961M for Q1 2014. Hopefully they can beat that. Q2 will be another relatively easy comparison at $2.107M for Q2 2014. Then Q3 2015 should be a blowout quarter. GLTA!
I saw this on FedBid. Looks like US Army is buying a 300, a 180, V-Author and some on site training. Probably close to a $0.5M order.
Thanks for sharing. PR company appears to be doing the job.
New article on Virtra in WIRED, "The Virtual Reality SIM That Helps Teach COPS When to Shoot"
http://www.wired.com/2015/03/virtra/
Two more new contracts (DOD and DOJ) on USASpending for $90K in what looks like extended warranties. GLTA!
VirTra to Exhibit at IDEX 2015
http://www.marketwatch.com/story/virtra-to-exhibit-at-idex-2015-2015-02-11?reflink=MW_news_stmp
TEMPE, Ariz., Feb. 11, 2015 /PRNewswire/ -- VirTra VTSI, +7.05% a leading provider of use of force training and shooting simulators to military, law enforcement agencies and other organizations, is exhibiting at IDEX 2015, an international exhibition and conference showcasing the latest technology from leading international companies.
Held biannually at the Abu Dhabi National Exhibition Centre in the capital of United Arab Emirates, IDEX will be held Feb. 22-26 featuring more than 590,000 square feet of technological innovation and is billed as the largest defense exhibition in the Middle East. More than 1,100 international and regional companies from 59 countries will exhibit at the show which attracts global decision-makers, government officials and military personnel.
At IDEX, VirTra will be showcasing its leading training simulators including the V-300™, a 300-degree virtual training system for use of force preparedness for police and military officials and V-Range™, one of VirTra's virtual shooting range products. The V-300™ is currently being used in various applications with an extensive clientele base that includes police and military agencies in several countries around the world. In the U.S. alone, nearly 200 police agencies use VirTra technology.
In addition, VirTra is partnering with the International Golden Group (IGG), a leading supplier of integrated defense systems in the Middle East furthering VirTra's international clientele reach. At IDEX, VirTra will be exhibiting at the IGG booth.
"It's a great honor for VirTra to be selected by International Golden Group as a partner," said VirTra General Manager Jason Mulcahy. "IGG provides VirTra instant recognition in both the civil and military markets."
In the United States alone, more than 200 police and military agencies use VirTra technology for use of force preparation. Recent additions to VirTra's client base include the Los Angeles Sheriff's Department, one of the largest police agencies in the U.S., and the U.S. Department of Homeland Security which employs virtual training with U.S. Custom and Border Protection with multiple simulators. VirTra also counts many international clients who utilize its technology.
Bob Ferris, VirTra's Chief Executive Officer, added, "While VirTra continues to enjoy much success is the U.S., we see great opportunities in our expansion efforts internationally. We look forward to showcasing our expertise at IDEX."
Agree. The relationship with IGG is a big deal and Virtra has been nurturing this relationship for a while now. I personally believe it is a large source of the increased revenue that we have been seeing. IGG could have aligned with Cubic or Meggitt, but they chose Virtra.
I like the way you think Speculation, but realistic.
In my view a healthy and necessary shakeout in support of moving higher. Plus, an MM or two are probably scrambling to build some inventory. This could get away from them in a hurry. GLTA!
The new IR firm appears to be doing a good job in the early going; that or Virtra was holding back until they cut the MG loose.
Thanks Teeroy,
I didn't look in to the details of patent violation, but I'm sure your right. I suspect the settlement is small potatoes, even for Virtra, but I do believe the Virtra products are superior to the Milo training systems. Maybe Arotech/FAAC has come to the same conclusion during recent settlement negotiations.
Not sure how hard the patent violation is going to hit FAAC, but since they obviously love the Virtra products, they may be best served by just rolling Virtra in to the organization. There are lots of potential suitors that could benefit by adding the Virtra products to their portfolio, but FAAC and TASER have to be a couple of the best fits in the US.
Andy,
I have to agree. The markup would be substantial to current valuation.
Or maybe: Virtra, a Division of FAAC
Thanks Andy,
They must have uploaded this morning. I didn't notice it late yesterday. I'm liking what I'm seeing with the new PR firm here in the early stages.
I don't recall management discussing, but over the last year or two they have put a big effort into new scenario productions and software upgrades. Not sure what their update pricing is, but it may likely be part of the extended warranty package. You can get a feel for warranty and support prices in the GSA catalog at the following link:
https://www.gsaadvantage.gov/ref_text/GS02F0214P/0NJM9Q.31VRR1_GS-02F-0214P_TEXTFILE2014WIFF.PDF
They seem to range between $20K and $40K per year depending on the system.
I believe a good part of the improved margins we have been seeing over the last year or two is a result of increased high margin business. This part of the business will continue to grow; you can't say the same for cost improvements.
You said; "One concern I have with VTSI is the big spike in sales that is due for Q4 followed by ????. How many multi million dollar orders are going to come from the Federal government?"
IMO, Q4 will not be as huge as some are anticipating. The sales from Q3 will likely be spread across Q4 and Q1/Q2 2015. You are correct, it would be foolish to expect a $5.9M Fed contract every quarter; even every year would be a stretch. What has me much more excited than the $5.9M contract from Homeland Security, is the additional $4.8M in sales that Virtra did in Q3. Those sales are repeatable and demonstrate that Virtra has successfully penetrated new markets. It's that $4.8M in sales that makes me optimistic that $16-$20M years are possible without a big Fed contract; and while all along, Virtra continues to build their high profit margin warranty/upgrade/support base. GLTA!
Agree with your logic and math. Not sure we will get 24M in revs in 2015, but its a nice thought. Margins do improve significantly with increased revs. Also of note, the margins are much higher on the warranty, upgrade and service/support business. So, as the population of Virtra systems in the economy increases so do the margins.
Virtra restructured and lowered the price on their systems significantly around two years ago which appears to have made them more competitive as witnessed by the steady revenue growth. What is remarkable, is how they have managed to cut costs during the same time frame. Lets just hope they continue to do what they have been doing. GLTY!
Question: I see Virtra will be demonstrating the "V-ST PRO" at the Virtra Vegas Experience 20-23 Jan along with the V-300 and V-Author. I don't recall what the V-ST PRO is and I can't find it listed in the Virtra brochures. Anyone know what V-ST PRO is? Thanks in advance and GLTA!
Link to Virtra Vegas Experience follows: http://virtra.crushpath.me/sholt/virtravegasxp2015
A decent PR out of the Midwest.
http://www.kansascity.com/opinion/readers-opinion/as-i-see-it/article4530153.html
Thank you Andy,
We all appreciate your shared communications with Virtra and Miller Group Management.
Regards, Ray
I'm definitely not an expert in OTCQX reporting requirements, but from what I do know, I don't agree with the statement "As far as up listing with OTCQX, the company must be SEC Reporting company to submit that application."
One of the key positive aspects for a Micro/Nano-cap company on the OTCQX is the opportunity to conduct "Alternative Reporting" versus SEC Reporting. From the OTC Markets website at http://www.otcmarkets.com/learn/otc-company-reporting "OTCQX U.S companies not reporting to the SEC can follow the Alternative Reporting Standard. These companies submit information pursuant to the OTCQX U.S. Disclosure Guidelines and are subject to the eligibility requirements and terms of the OTCQX Rules for U.S. Companies. OTCQX companies provide current and potential investors with a set of "material" information to help investors make a sound investment decision. OTCQX company disclosure enables an investor to understand the company’s business operations and prospects.
The detailed Alternative Reporting requirements can be viewed here: http://www.otcmarkets.com/content/doc/OTCQXGuidelines.pdf
SEC reporting requirements can be viewed here: http://www.sec.gov/investor/pubs/microcapstock.htm
Virtra is a "Nanocap" company with less than $10M in assets and less than 2000 share-holders of record and is not required to submit reports to the SEC and has not been reporting to the SEC since 2008, which IMO makes Virtra eligible to report via OTC Markets Alternative Reporting.
I would recommend a re-engagement with Rudy and/or Bob on the comment "As far as up listing with OTCQX, the company must be SEC Reporting company to submit that application."
Also of interest on this topic is the requirement for a DAD (Designated Advisor for Disclosure) by the OTC Markets if using Alternative Reporting. DAD fees can range from $15K to $100K per year for a company. See below comment from the following link:
http://www.valueinvestorsclub.com/idea/OTC_MARKETS_GROUP_INC/63425
"Also, OTCM has a free, hard working, and growing sales force in the form of the investment banks and law firms that are encouraging qualified companies to hire them to be the DAD/PAL required to list on the OTCQX and stay listed. The DAD/PAL could charge anything from about $15,000 a year for fairly bare-bones service that covers the basic paperwork to well over $100,000 per year for very full service that includes regular updates on market activity, road show trips to meet potential US investors, lining up research coverage, consulting on acquisition possibilities in the US market, and any number of other services. Investment bankers and lawyers, like anyone else, want clients who provide recurring revenues and an opportunity to earn larger fees on specific projects."
I'm not sure if Miller Group is a registered DAD or not with the OTC Markets, but they should be. The cost is minimal at one-time $1k filing fee and annual fee of $1k. From my research, the cost for Virtra to uplist to the OTCQX is around $5k application fee; $10K or $15K annual fee to OTC Markets; and $15K to $100K annual fee for a DAD. This is no where near the annual costs Virtra alluded to in their 2008 letter posted by Ardly at post #36955. Inquisitive minds want to know?? GLTA!
It's not 30 consecutive calendar days with a close over .10, but rather 30 consecutive calendar days with a bid over .10; and I believe the answer is yes. IMO, Virtra has satisfied all requirements to submit application ($5k fee) Monday morning for uplist to OTCQX U.S.
The uplist requirements can be viewed here http://www.otcmarkets.com/content/doc/qx/Rules/OTCQX.pdf See paragraph 2.2. GLTA!
Washington State Patrol purchasing a VS300LE-2 with accessories via sole source procurement. Close date 13Nov14.
http://omwbe.wa.gov/bids/rf-157300-virta-300/
Well done Denver!!
Congrats Don. I think you will see a nice profit to reward your patience near-term. GLTY!
Possibly employees executing options. It's been a long time since they have had opportunity to execute options between .04 and .07.
Flirting with breaking that multi-year high at .12. GLTA!
We have to restart the 30 day count for VirTra to satisfy the OTC uplist requirements. GLTA!
Good article. Thanks for sharing.
Correction: OTC uplist requirement for 90 days above .10 is now 30 days. See post 36195 which provided additional details and link. 28 days and counting
Thank you for the link fix.
Virtra has another sale with Federal government on USASpending.gov. This time with the Dept of State,Bureau of International Narcotics and Law Enforcement Affairs for $138K.
http://usaspending.gov/explore?fiscal_year=all&comingfrom=searchresults&idvpiid=GS02F0214P&typeofview=complete
Let's see if we can hold .10+ and start the 90 day countdown. Congrats and GLTA the old diehards and the new share holders!
Cup and Handle: Take a look at a 6 month chart and it looks like we may have a text book Cup and Handle formation developing. Looks like the handle is being put in place now. In the past, VTSI hasn't followed traditional TA, but that may be changing with improved volume and visibility. GLTA!
I've been saying it for quite a while and still believe Virtra has been waiting for the fundamentals to support a sustained share price above .10 and then they will execute the uplist. OTC QB uplist requires share price above .10 for 90 days. Virtra is already satisfying all the other uplist requirements. IMO, the fundamentals are now in place to easily sustain .10+ for 90 days. GLTA!