Replies to post #18152 on Infrax Systems Inc (IFXY)

[1971]

Difference between INFRAX and SilverSpring:

From: Sam Talari <[e-mail]>
To: Dave <[e-mail]>
Sent: Tue, November 23, 2010 12:41:53 PM
Subject: RE: This Week's Questions For IFXY Management

Dave;

Some info that might be useful in considering the market size for Smart Meters globally. One important piece of the Smart Meter is the communications module that fits under the glass and sends/receives data from and to the meter (Infrax is building the same communications module but with a built in security ~ SNIC). I will use our competitors data, not considering the security piece that we are developing;

Silver Springs Networks

They started developing their NIC (Network Interface Card) or the communications module for the smart meters around 4 years ago. After completion of their NIC, they did a license deal with GE to embed the Silver Springs communications or NIC card into all the Smart Meters sold by GE exclusively. GE’s cost of the NIC that they pay to Silver Springs (estimated) is around $25 a piece, but they charge their customers around $35. But GE does not sell directly to the utilities (in most cases) since the module needs to be configured and be part of a last mile communications build out. So the average Smart Meter cost including all the pieces is around $240/meter (depending on number of meters). So for 1M smart Meters, the revenue would be around $250M for a company like Silver Springs or us for that matter. Silver Springs currently has a revenue pipe line of around 10M meters or $2.2B (estimated).

There are close to 200M electric meters in USA, not including gas or water meters, that needs to be changed to Smart Meters. There are a total of 2.5B electric meters worldwide (not including gas, water) that needs to be changed to Smart Meters. Total meters including gas and water globally is estimated to be around 5B.

So do the math.

Infrax Systems