Replies to post #51490 on Applied DNA Sciences Inc (APDN)

[abew4me]

If they announce the revenue, they would ruin the deal for the next client.

Let's assume that Puma or Adidas is getting ready to make an offer of 20 cents per pound to mark their stuff.

But then they find out that this company only paid 10 cents per pound.

Guess what? They just shot themselves in the foot.

[mickyboy59]

FIRST PART

to apdn1, Mike, Rode, Park and whoever is interested....after the last press release with WestPoint Home I immediately wrote to Sanjay:

"
Dear Mr Sanjay

One deal after the other are disclosed now since some time BUT ALWAYS WITHOUT ANY REVENUE NUMBERS. Like this for example : Applied DNA Sciences Pens Deal with WestPoint Home for CertainT Program. The deal will verify recycled PET and PET for WestPoint Home's hospitality bed and bath textiles

All shareholders are laughing about that now and its really getting boring with the time. WHY FOR HEAVENS SAKE YOU NEVER PUT A FIGURE IN THAT PRESS RELEASES? Is that, because the revenues are so laughable ?....or….is that because you have absolutely NO IDEAS about how much revenues it will produce for you. Both is not very professionally and therefore I cannot see, why never ever we get some numbers.

PLEASE give me a feedback about that topic...WE ARE SOOO INCREDIBLE IN THE DARK. Thank you very much in advance."


I know, its written quite agressiv but I wanted to provoque a good answer...Here now his answer and I should write it in complete:


"Mike –

The following response to your questions aggregates Jim Hayward’s and my response to your questions:

There are several reasons why Applied DNA does not provide monetary remunerations as part of certain contract award announcements:

1) The customer does not want information that gives insight into its internal pricing to be disclosed;
2) Disclosing pricing via a public press release would put Applied DNA at an economic and/or strategic disadvantage when negotiating with future prospective customers.
3) The value of the contract is based upon future events and thus, the contract value is not known at the time of announcement. This is very common with licensing/royalty contracts.

With regard to the WestPoint Home CertainT licensing announcement that was the reason for your email, it is a combination of (1), (2) and (3). WestPoint asked that the contract value remain confidential and given Applied DNA’s pipeline of potential opportunities with synthetic goods producers, the Company did not want to disclose its pricing.
In addition, the lion’s share of revenue from the WestPoint contract will come from product-based royalties, a fact which was noted in Jim Hayward’s prepared remarks on 5/3/18. In WestPoint, we have a customer who wants to deploy CertainT across certain SKUs. How much in royalties that will entitle Applied DNA will be based on how much of those SKUs WestPoint sells. As such, Applied DNA can’t offer a dollar amount in a headline today that is based upon products WestPoint won’t sell until some future date.
This licensing agreement and other revenue-generating announcements should excite investors, not make them laugh. They should see each announcement as growing market adoption and a new path to monetizing the company’s technology and, ultimately, higher revenue. They should also see it as CertainT offering the company a path to long-term revenue generation, a product of management’s plans for building a growth business supported by a growing base of recurring revenues.

I do not expect Applied DNA to provide dollar amounts in its press releases, though revenue from these contracts will be reflected in its quarterly reports. It is unfortunate that shareholders base their perception of the company’s success solely on a dollar amount in a headline and ignore the very “un-boring” growth in recurring revenue levels, the market-leading positions of the company’s channel-partner customers or its ongoing ability to monetize its technology platform in new business verticals. As management articulated on yesterday’s earnings call, there is significant momentum in the business.


Sanjay M. Hurry, Vice President
Investor Relations Counsel, Applied DNA Sciences


Conclusion: for me I was very satisfied with his answer and as always I am looking forward until the big pay day (jmho)

[mickyboy59]

SECOND PART

to apdn1, Mike, Rode, Park and whoever is interested....after the response from before (Post 51664) I wrote him again:

"
Sanjay

Thank you very much for your detailed answer (together with Jim Hayward)

First…I wanted to excuse myself, that maybe you had the impression, that I also «laugh» about these press releases. Its not that way.… You must know, that the reason I am a shareholder here and almost since ten years is exactly about why I also see a very bright future and see the progress APDN is doing. Its just the time factor, that I am a litttle bit disappointed, because its taking soo much time to get there. And of course I completely understand, that its very difficult to see in the future how much earnings will come with that. And also, that you cannot give specific details about how much for this and how much for that in relation to competitive advantages is completely understandable. BUT maybe sometimes it could be possible, that you give a range….a good guestimate….what some contracts could mean for APDN. I know, its difficult, but it would help for sure.

I am just asking myself why APDN is such an undervaluated share in comparison to many many others in the market. Are we the only ones who really see the value in this little «GEM»? Is Mister Market so completely wrong here as Jim Hayward already said, that we should be a Billion Dollar Company already now?

Anyway…I am still convinced about the future of APDN and for sure will never ever sell some shares for this ridiculous prices as now. Keep going in that way and if possible give some guidance as it is possible.

Thank you very much again and have a very nice day"


AND HIS ANSWER CAME IMMEDIATELY:


"
Mike –

Thank you for asking. Yes, you may post my response to I-Hub, but please be sure to do so in its entirety.

While I understand the need for even a range reflective of contract values, it is not possible to even provide as, as I stated before, it is completely contingent on demand (volume) by the customer, and the customer doesn’t have a clear understanding on what demand will be. What the customer does know across all CertainT licensees is that: 1) CertainT can be a competitive product differentiator in the market when their product sits on the shelf next to a competitor’s product; 2) the customer’s success is APDN’s success, and the customer is incented to make it a success because the CertainT product usually means better economics to them (the customer).

In cases where we can provide a dollar amount or equivalent in a headline, we can and do. A cursory review of cotton (# of lbs to be marked in a particular order) or Gov/Mil (Rapid Innovation Fund contract value is set) press releases attests to this.

With regard to a capital raise, what I can tell you is that the company has an active shelf registration with the SEC, so investors should assume that the company has the ability to execute on a financing at any time. This, however, do not speak to management’s present disposition to conduct a raise."


Sanjay M. Hurry, Vice President
Investor Relations Counsel, Applied DNA Sciences

LHA Investor Relations: Results that Matter
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