Secure Point Technologies Inc (fka IMSCQ)

[mas]

Ok, let's do the math from a financial year POV. Buldoc has said that he expects FY2015 to come in around $20m+. He has also said the 1170 units will be delivered from Dec 2014 to Sep 2015 i.e. over 10 months with about 120 in each month. So FY2015 will contain ~70% of the order. 70% of $21.5m is about $15m. This quarter saw $1.8m other sales, say $1.5m normal average, multiply that by 4 and add to $15m and you get $21m which is pretty close to what Buldoc said FY2015 would turn out which does imply the $21.5m TSA figure for 1170 is correct.

Now you said it would be unprofitable at that rate, I say not necessarily at full factory floor utilization and there will be full QS-B220 factory floor utilization from next month for the following 10 months processing flat out the TSA and other orders. You will have to wait for FY2015Q3 to be reported in May 2015 to see how profitable or unprofitable full factory floor utilization is but it is obvious that under $20K a unit is very cheap and the TSA will come calling again with more orders if they remain that cheap meaning that a $162m IDIQ could keep IMSC busy for the next 70-80 months i.e. 6+ years at that rate.

Even if you are only mildly profitable each quarter that sustained level of profitability will burn up all of DMRJ/Management options over time and allow for stock appreciation on top. There you go, I have produced an optimistic IMSC scenario and I did not have to make a single thing up like pretend a FPDS figure is not what is says it is . That's how you should present optimistic but believable DD.