Intouch Insight Ltd (INXSF)

[MikeDDKing]

As I understand things, the improvement in GM is due to switching the customers from SI software to INX software. The GM improvement is not related to obtaining new customer contracts. I don't know the mechanics of the conversion but they likely need to write software to convert customers over. That type of conversion is often not done one customer at a time but rather is done as a group. I could be wrong about this but that is what I have pieced together. Also, if you read the April 30th PR, it indicates that they expect gross margin improvement in Q3. They didn't say they expect gross margin to increase sequentially through the first three quarters which is what you would expect if your theory were correct.

You probably are also correct that there is some conversion cost that is temporarily impacting GM.