Thoughts While Shaving;
What I would like to see next from SB.
In the next communication or at least by the end of August a forecast of quarterly revenue. Steve has 3 elements of revenue:
1. Steady State - meaning implementation is done and now on recurring revenue cycle (reorder rates).
2. Roll out revenue - seeding new accounts with start up inventory before steady state occurs.
3. Pipeline opportunities in various states of closure. Anyone worth their salt as a salesperson would have a firm grip on the potential of their pipeline.
Steve has a total visibility on 1 and 2 and knows the pipeline opportunities and where they slot in terms of closure.
Based on the above, I think SB owes the market a forecast of quarterly revenues on an ongoing basis. He needs to signal exactly what the expectations are for the upcoming quarters and he should be measured based on that success or failure.
Hell if he gave me insight into the above I could do the calc in no time myself.
If he did this, it would stabilize the trading and allow for a real evaluation of where we are headed and provide indicators of growth and profitability.
Example: he forecasts $2M for Q-4. That is an ongoing run rate of $8M annually. At 30% profit that is $2.4M annual profit. At 30 times profit the market valuation would be $72M or $.017.
This is the kind of visibility we need as investors and ONCI can and should be able to provide this guidance going forward. This company is now a revenue producing entity and anything less than this expectation is unacceptable.
Steve needs to recognize he has now entered a new phase of his responsibility as a CEO for a revenue producing company, as small as it is. It is no longer acceptable to just flash an SHL and think that satisfies the investors - not acceptable and he should step up his game ASAP.
Just my idle thoughts.
What I would like to see next from SB.
In the next communication or at least by the end of August a forecast of quarterly revenue. Steve has 3 elements of revenue:
1. Steady State - meaning implementation is done and now on recurring revenue cycle (reorder rates).
2. Roll out revenue - seeding new accounts with start up inventory before steady state occurs.
3. Pipeline opportunities in various states of closure. Anyone worth their salt as a salesperson would have a firm grip on the potential of their pipeline.
Steve has a total visibility on 1 and 2 and knows the pipeline opportunities and where they slot in terms of closure.
Based on the above, I think SB owes the market a forecast of quarterly revenues on an ongoing basis. He needs to signal exactly what the expectations are for the upcoming quarters and he should be measured based on that success or failure.
Hell if he gave me insight into the above I could do the calc in no time myself.
If he did this, it would stabilize the trading and allow for a real evaluation of where we are headed and provide indicators of growth and profitability.
Example: he forecasts $2M for Q-4. That is an ongoing run rate of $8M annually. At 30% profit that is $2.4M annual profit. At 30 times profit the market valuation would be $72M or $.017.
This is the kind of visibility we need as investors and ONCI can and should be able to provide this guidance going forward. This company is now a revenue producing entity and anything less than this expectation is unacceptable.
Steve needs to recognize he has now entered a new phase of his responsibility as a CEO for a revenue producing company, as small as it is. It is no longer acceptable to just flash an SHL and think that satisfies the investors - not acceptable and he should step up his game ASAP.
Just my idle thoughts.
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