Sounds like orders or on the horizon. The option play is very bullish.
They shipped $183k in products in Q1. All prototypes to 3 customers? Looking at it simplistically, thats $60k a client for prototypes. Tier 1 or tier 2 clients to drop that kind of cash and I believe you're right on about the cash flow.
The raw material is a very small percentage of sales. The volume could be anywhere. I've seen hardware that could fit the bill run anywhere from $300 - $10K each, so it's hard to gauge, but my instincts are telling me its within one machines capacity for all three customers at the cycle times mentioned. The way funding has been in recent years, startup time is typically not a luxury anymore. Was there ever any mention if the parts are for new designs or replacing current hardware in a pre-existing. A new design would most likely bring a smaller turn-on upfront and a delay for qualification efforts at the clients end, where pre-existing would require much less of a qual effort if any.
As far as repeatability of sales, the average price for prototypes tells me we're talking about sales that are in excess of $1M/client/year/2-5 years. Purely from the ranges I've seen.
I think you're right on about the partnership agreement. I'm thinking Apple is tied in somehow here. There are NDA's and then there's just being secretive and this sounds more like the latter.
Thanks for the reply
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