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Re: tedpeele post# 131203

Tuesday, 01/24/2023 4:37:35 PM

Tuesday, January 24, 2023 4:37:35 PM

Post# of 189367
You're conflating cost with price and you're conflating revenue with profit.

Cost is the amount of money LWLG must pay for production. Price is the amount of money the customer will pay for the finished product.

Price of product times quantity equals revenue. Revenue is top line, gross sales. Then you subtract the cost of doing business to get earnings. A standard earnings metric to compare companies within a market segment is EBITDA, not revenue, not cost, and not price.

LWLG's wafer cost has no bearing on revenue projections.

LWLG's wafer cost also has no bearing on market competitiveness.

LWLG's wafer cost is a single variable among many that will dictate profit margin. That's it.

Cost does not dictate product pricing for enabling technology. The price a customer will pay for a technology product is determined by the amount of money the enabling technology will save the customer. In the case of LWLG, it is hundreds of millions per hyperscale data center over the operating life of each product generation.

It would be helpful to have a discussion so long as we are all using the same and correct terminology. If not, it is incredibly easy to confuse people enough to make a point sound valid when it is not.

Hope this helps.
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