From the other board: @driver Judge I do not
Post# of 11803
(Total Views: 475)
Posted On: 06/17/2019 3:34:46 AM
From the other board:
If we can still count with DECN's 20% net margin a license deal in the 18 million dollar area annually would be the equivalent in sales of around 90m dollar. A very elegant way to reach the same effect in earnings. And this would be just for the Genultimate TBG. There are probably more to come...
In the interview KB said last fall that he wants to make 100m dollar in revenue in the next two years. A license deal would acchieve that level much faster.
Quote:
@driver Judge I do not think that KB will hold out for a $100 million per year royalty. I think the cash flow target should be about $1.5 million per month for 4 or 5 years after a downstroke of $4-5 million. Interesting the royalty stream will not follow a bell curve. The meat of the cash flow stream will be months 13-30 as Platinum recovers some of the users that gave up on the OneTouch Ultra and now have a reason adopt that meter again and then along the way upgrade to the TBG meter. This is the easy part of the sale to Platinum, but the same sell might be even easier to a deep pocket competitor looking to make sure Platinum doesn't get access to the lifeline.
If we can still count with DECN's 20% net margin a license deal in the 18 million dollar area annually would be the equivalent in sales of around 90m dollar. A very elegant way to reach the same effect in earnings. And this would be just for the Genultimate TBG. There are probably more to come...
In the interview KB said last fall that he wants to make 100m dollar in revenue in the next two years. A license deal would acchieve that level much faster.
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