Liquidmetal Technologies Inc (LQMT)

[The Paraclete]

If our recurring order contract is ho hum we might see a dip before the next PR.

You mean “after” the next report. Unfortunately, there’s no way to call it ahead of time.

The thing to remember about recurrent orders, as opposed to one off orders, is that revenues compound as time progresses. So if you think they have really broken the ice and that their first order will lead to additional orders, revenues from the first order, even if just “ho hum,” will be added to that of subsequent orders. That’s why a recurrent order is such a big deal.

While most here are predicting a CE order, the downside of a part order for a device that changes every year, like cell phone frames, is that the part ordered will also likely change every year. And each year that part order is subject to bids from other companies. In other words, such a recurrent order is limited to a one year production run.

But if the part is for a pressure sensor in an automobile tire, or for an internal part in a medical device, such as a surgical tool, the part ordered won’t change for many years. It’s not subject to yearly design changes. I.e., the parts will be delivered monthly over a period of time lasting several years. At this juncture in the company’s history, a smaller recurrent order lasting for 5 or more years is more important than a single large order delivered in parcels of one month at a time for just one year. — Lots to think about.