Second Quarter 2011 over the second quarter 2010 comparisons are not relevent right now. During the 2010 second quarter, VKNG was not selling what we're banking on them selling now.
Left unclear is whether the 8 new demonstration systems increased ANY reach into new markets with new distributors, or if existing distributors bought ALL of the new demo systems because their sales pipeline cannot be satisfied with their single demo unit.
Personally, I would prefer more global reach. Though the latter is good too. The bad part of existing distributors buying more demo units is if they are also selling demo units "used" like "floor models" at a car dealer or an electronics store. That doesn't help VKNG's profit margin.
What we need:
Confidence that the distributors can sell 1 unit per quarter per demo unit. At a point in time not long before then, VKNG is going to turn into a great "buy" on some micro-cap analyst's radar screens.
When we know the distributors are selling 1 unit per quarter per demo unit, that's when VKNG will "already" be a "safe buy" and cheap shares will be a thing of the past.
During the quarter, Viking sold 16 of its recently-released 3DHD Vision Systems. Of the 16 3DHD systems, 8 were sold to customers and 8 were sold to distributors as demonstration systems. ... the typical capital equipment sales cycle is six to nine months, ... we have sold 18 end-user systems during the first seven months since product release ... In order to keep up with demonstration demands, distributors are purchasing additional demo systems. We now have 28 demo systems deployed worldwide and expect this trend to continue as we expand our distribution footprint."
Viking Systems also reported that as of June 30, 2011 it had shipped a cumulative total of 50 3DHD systems, 28 demonstration units, 18 customer systems, two "Center of Excellence" systems for which there was no charge, and two market development systems to third parties, since initial shipments of the 3DHD systems began in December 2010.
AI
