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alanthill

03/29/14 4:22 PM

#14750 RE: Schris #14749

Please keep in mind that you are not dealing with an Apple or a Microsoft here. SGLB is an early stage startup with zero ability to support a customer base on any kind of scale. The distributor will be responsible for manufacturing, duplication, documentation, training, technical support, distribution and so on. They are going to take the vast majority of any margin generated because they are doing almost all of the work and taking most of the risk. I could be wrong but I would be amazed to see more than 10-15% net margin drop down to SGLB. In terms of sales in the first year I really have no idea. To my knowledge there has not been any disclosure of what each sales unit consists of, (does it include training and support, etc.). In my opinion sales of 5-10 million dollars in 2014 to GE or another major manufacturer would solidify SGLB's legitimacy and lead to a more aggressive sales rampup over the next few years. We are all guessing at this point however. That's my best guess. Perhaps the 10K will shed further light on the question.