Replies to post #1552 on Viscount Systems (VSYS)

[tedpeele]

I'll agree that it isn't looking as good as we had hoped, nor as good as it could have looked in terms of profits--can't say about revenues--and I thought too the cash would last longer than it has. Saw too months ago that our CEO had put his residence up for sale at one time for 7 figures if I recall correctly, so that has added to my caution, along with his failure to meet his own goals at MACE. The stock is down here for a reason: People have lost faith because the performance hasn't matched the words. But, I still hold onto the near profit of last qtr when you strip out the stuff that is non-operational as a sign that we might get there.. eventually..agree though that another new hire now is not what shareholders needed to see.

[nealg]

Newbie,

<<I've followed the news for the year and the thing that stands out is that the company seems to be living by the US Gov't contracts that were already coming into place. There have been no other real revenue based news releases. Yet, to execute nominally larger revenues Raefield has hired himself umpteen senior managers and VP's. From there financials it appears they've almost doubled their labor overhead but with maybe 1 or 2 sales hirings. >>

From memory, most, if not all, of the new hires are related to sales positions. So I don't think you are correct with your 1 or 2 figure. This new guy is also a sales guy who has come in to shore up commercial sales, the place where they need to grow. I am sure he will be selling as well.

There is no way to prove that sales with old management would have been about the same. My own opinion is that sales were lagging, even the government sales, and that is why they changed the position at the top of the firm. They fixed a problem with returns which could have killed the company and have this new FICAM approval which just occurred at the end of August which should allow them to get some bigger government contracts.

I don't think Raefield's contention about not needing money for at least another year runs contrary to what we have seen in the financials(and he has the inside track on what is being sold, they reported halfway through the december quarter so they have a good idea about what is happening for the quarter). Based on their old burn rate, they may not have had the ability to get the orders that they have secured so far this year.

I am realistic realizing that things may change and things aren't always what they seem to be(and they could be better than they are appearing right now as well). And things with small companies can run off the tracks very easily. But the risk reward ratio at this point still looks very promising to me and I don't hold the negative opinion of present management that you do. I keep on waiting for Viscount to live up to its promise. I don't like having to be patient but I think, at least for now, patience if warranted.

Good luck and happy holidays