Replies to post #30621 on Secure Point Technologies Inc (fka IMSCQ)

[T-R1]

I told you guy a number of times that price is not fixed and TSA sets their own margin... that's right... TSA has the right to tell a company that margins are outside of allowable range. (TSA gets to see BOM with cost breakdown).

Best margins are in EU/Israel from my past experience.

[BradyBronco]

So what do you think the company is worth?

[tedpeele]

It was not an idiotic discussion. Margins matter. In case you missed it, even if the 21m figure has no predictive value, we still know the approx unit cost and price for EU, and we know a cap on the price per unit for the original TSA order. Those things matter. We know those from doing computations. Some continue to insist that the TSA 1170 order was won at cost, others continue to insist that it was twice that. There is no logical reason to conclude either of those, as the data we have refutes both contentions.

What I wonder now is what IMS is going to report for the TSA revenues for the quarter. Will they have to use the TSA 19k per unit figure that so far is the only one the TSA has attached to the 1170, or will we see something higher than a Gross Margin of only around 20%?