Replies to post #48296 on NeoMedia Technologies, Inc (NEOM)

[sonofgodzilla]

Personalizit, have learned so much about this I think I never realized until running into you and others here, thanks for enlightening me. Earnings shrmernings....nothing but a can of worms imho...lol

SOG

[bodreaux]

But you certainly can't realize profits without revenues and cash flow. Building the cash flows and revenues are exactly what a company bringing an emerging technology to market have to focus on. There is no way they can turn a profit until the market for their product is realized. Neom is in the process of creating and educating their market. Why focus on something that is not going to happen till then? A company lives and dies on it's cash flow. I've also seen companies that turn a quick profit go out of business. I'd rather have the business model guy focusing on the proper building blocks to the foundation (long term focus), rather than worrying if he's going to beat last quarters numbers (short term focus). IMHO one of the biggest mistakes management can make in a company is to lose site of the big picture by making short term decisions for short term results, resulting in long term disaster.

[Andrew138]

Personalizit,

What are you disagreeing about? I am saying what you are saying, perhaps in a different way.

"If they take care of REVENUES, it provides an OPPORTUNITY TO MAKE A PROFIT, if they also take care to watch the COST and EXPENSES"

If there is revenue, there is an OPPORTUNITY (HOPE) to make a profit, (not necessarily guaranteeing a profit as you say, and I agree). I also added that they must also take care to watch, (that is control) the COST and EXPENSES, which affects the margins, especially if in a competitive business.

If there is NO REVENUE, there is NO OPPORTUNITY and NO HOPE whatsoever to make a profit.

The statement, ""REVENUES and CASH FLOW are important and not profits" is meant to indicate where the near term management focus should be on, which is CASH FLOW and REVENUES, rather than on profit.


Andrew138

[lesnshawn]

Personalizit: You said it correctly here regarding profits, "Margins do not always allow it if you're in a competitive business."

But, how competitive a business do you really think NeoMedia is gonna to be in when they own "the bridge", especially if the have the 800lb. "Billilla" acting as bouncer to enter the joint. ;)

Think about it.

lns

[DannyJoe]

Personalizit,

My take is that at this start up and growth phase NEOM needs revenues and cashflow to stay in the game until the so called tipping point.

The great thing is that NEOM is alot like Mister Softee in that it's costs are relatively fixed no matter how many companies and people adopt our technology. We have a moat of patents around us to bring everyone to NEOM.

NEOM doesn't have to go out and buy steel,plastics,wood, or any other resource for it's products.

I agree though, at some later point you have to see profits or the stock price cannot be supported at a much higher level that we all want to see.

DannyJoe

[Drmyke3]

Jensens point was that it is too early to worry about profits. They have much work to do to increase revnues and are not making it their objective to be currently profitable. IMO, they are building a new business and the doors to the public are not ready to be opened.