A post of mine from RB...
About the revenues from monthly service fees....
Somewhere along the line they mentioned a monthly service fee of 26.99 a month but I can;t remember where I found that. But yes it does increase revenues dramtically. Take a look at the order for pro-sec of 5,000 Cyber Trackers.
5,000 x $500 per unit = 2.5 million dollars
26.99 x 12 months in a year = $323.88 revenue per unit sold each year
323.88 x 5,000 units sold = $1,619,400 revenue HISC will make each year
from this one order
Even if HISC does not sell anymore cyber trackers again they will bring in 1.6 million in revenue for the year. Imagine if HISC sells 10,000 units per year every year....crunch the numbers
YEAR 1:
10,000 x $500 per unit = 5 million dollars in hardware
323.88 x 10,000 units = $3,238,800 revenue HISC will make each year
Yearly revenue = $8,238,800
Year 2:
Hardware: 5 million dollars
Monthly Fee: 3,238,800 plus another 3,238,800 = $ 6,477,600
Yearly revenue = $11,477,600
Year 3:
Hardware: 5 million dollar
Mothly Fee: 3,238,800 + 3,238,800 + 3,238,800 = $9,716,400
Yearly Revenue = $14,716,400
Revenues for all 3 years =
$8,238,800 + $11,477,600 + $14,716,400 = $34,432,800
These are obviously lowball figures because if HISC gets one more order than they will sell another 5,000 trackers for this year alone ...and I am sure there sales will increase each year. But even assuming that they did not HISC would make $34,432,800 over the first 3 years. This does not include revenues from the Sniffer, WMV robotics, the Cyber Pass, Cyber Rad, and now the sales that Act Soft has: Which is 12 million in revenues for 2005 (estimate by Tom Mitchell the CEO) and they expect 25 million in revenues for 2006. Now do you see how Frank Moody can say they will make 125 million over the next 3 years? I think they may double that prediction or more!!!
Just imagine if HISC signed one state gov't for the tracker like Spence Greissenger said about the state of California...they own 90,000 vehicles
90,000 x $500 per unit = $45,000,000 for hardware
90,000 x 323.88 for service fees = $29,149,200 revenue each year
If HISC ever lands one deal like this then they are a guranteed 50 million dollar company per year.
And this is why no one will ever get one single share from me until they pay a fair price for it and that is way past dollar land...5 dollars plus is my target price for this stock within 3 years.
The Kook Book
AI
