Intouch Insight Ltd (INXSF)

[littlefish]

Any idea if the 10% royalty payments (for first year of gross revs from SI customers) are based on the August 2011 period as beginning of 'first year' or if it might be calendar year (i.e. 2011 1st year and 2012 2nd year)? Wondering when the royalty % drops to 5%. Guessing it would be August but not sure.

Looked like the deferred cash payments with that deal go away after first half 2012 too and allow INXSF to capture potentially higher margins as they sign on the former SI customers onto In-Touch and as royalty payments drop to 5% of gross revs. Makes sense they're guiding for higher margins although we're not talking real big dollar amounts with the payments (cumulatively they do make up a chunk of change though).

Glad they got rid of that royalty structure with the funky % of market cap payments. Never liked that.
This company looks pretty interesting.

Good luck.