Replies to post #30627 on Secure Point Technologies Inc (fka IMSCQ)

[tedpeele]

Why would you need to ask that? The $21m figure works out to around 18-19k.

Buzz has suggested $14m for the quarter, but clearly if the TSA only pays 18-19k per unit and 400-500 units are delivered, people are going to go ballistic here when they see the EBITDA.

[tedpeele]

Yes, we know the $21m is 'wrong' but my concern is what does 'wrong' mean? We know it most likely isn't completely made up because it does divide evenly by 1170 (only 1 in 6 realistic whole numbers divide evenly by 1170, if I recall correctly). So, is it a 'base' payment per unit that the TSA will be paying, only to pay more later, and not just for the add-ons we always would expect to come later? If so, what does that mean we will see for revenue when the first 400-500 units are recorded? Will we see the TSA base amount and the associated negative EBITDA and be left HOPING they will make up the difference in some mysterious fashion in the future, or will they actually pay IMS the 'right' amount as units are delivered? I don't really expect the 'right' amount because that would blow the cover on the price per unit secret they seem determined to keep for as long as possible. That's my concern for a few months out--ie the wrong amount continues to be reflected, which makes the numbers look pretty bad.

Right now my concern is the same as yours: Is the TSA there and will a shipment occur in the very short term?