When Is The Earnings Call? ... Any questions? Rev predictions?
The only place I see it is Yahoo for Nov 5th, Monday. If so, the company is waiting to then to announce it. Oh wait, Thomson Reuters concurs with Nov 5th.
Jim covered a lot of ground last call. And lots of good info in the Q&A portion, which happens only when shareholders ask questions.
1. If you still are keeping some of the major partners a secret, then please give us the nature of those relationships in general, and which industry includes them. For example, out of the list of prospective TappIn partner industries you gave us in the Spring, we have seen partnerships come to pass out of that list so far with three hard drive manufacturers, one of which is into all other industries and areas of consumer electronics as well, and a fourth is maybe the largest antivirus company in the world, plus we have heard you've been in negotiations with others on top of that. You are obviously a big hit with these several industries, no doubt.
2. Of these key partners with TappIn, is there an open door for appShield to partner with them for that solution, especially ESET seems it would benefit greatly from adding appShield right along side next to its antivirus product suite as a complementary solution. Is that right to think that Tappin partners may be also interested in appShield? Can you elaborate for us on some of that, what may seem obvious to you, what we may know a little about, but I want to hear it from you how that looks to you. Does it look like the TappIn rollout is going to assist the appShield rollout is another question in this line of thought.
3. You mentioned last call you expected EFT in its various forms to continue to underpin your core revenue. That seems logical for 2012 with TI & AS just getting started, but for 2013 and beyond, with TappIn and appShield both out., either of those have the potential to far outperform sales of EFT, and your projections of potential sales of them you said for appShield were way up there some of those projections, plus last call you admitted that TappIn is generating a lot of interest in the market. Don't TappIn and appShield have the potential to be revenue pillars above and beyond what EFT has done, is doing, from what we've already heard? Yes, indeed, they must. They have broad-based appeal to the entire consumer market. Just give them away free, if you don't think so, and everybody would download them. Very useful products with a niche all their own.
4. Growth expectations: sales, earnings, m&s, deferred, subscription
5. More on Microsoft
6. Computer manufacturers including Toshiba
7. Potential Texas or Washington based partners
8. ARMY; McLane
9. AMD what do they think about TappIn; are they a potential partner besides big customer?
10. Your marketing campaign for TappIn. How's that going.
11. International markets teams in SA, Europe etc.
12. CuteSendIt big in London/UK ... is that from marketing or what?
13. Guidance for the next twelve months or for 2013: 20% growth would be possibly $30 million level. But you have massive leverage and potential from Tappin and appShield. Do you feel confident you'll have the first $10 million quarter in 2013, all things being equal.
14. Preface that with "TappIn, they are working to earn $3 million in 2012, Q4 mostly. Can you comment on their progress toward that or not at this time?" (Because if they have good sales and earn the bonus, we got the answer for 13. The problem for them earning $3 million in Q4 with Tappin, I think that would be a wake up call if they did it. But prob they have to report $3 million in sales as deferred revenue over 12 months, so $3 million in sales becomes $250,000 a month, or $750,000 a quarter approx, so they'd need like $12+ million in new orders to do it. I believe so. It requires a little calculus to figure, but by end of Dec 2012, this is correct here, then closer to $15 million in sales revs to them ... besides what they split with their partners. Yes, it can be done. Will they? They have a chance.) (Thought occurs to me, it's kind of funny, they are allowed to call it earnings over time of the contract, but I don't know anybody who ever turned their software back in, and got a prorated refund. You buy your antivirus, you own it the whole year, whether you use it or not. It was a good faith purchase, sold in good faith. But they have to account for it like it's not, like it's tentative and iffy. IMHO)
That's gotta be wrong that they'd need $12-15 million in sales due to deferred revs. I guess we could use some clarification on the call how that bonus would be earned under those terms. Hopefully they don't divide those by 12, but count whatever their portion of it is from their partners. That brings up another point, do the partners pay them their total share for a $40 subscription all at once and they do their own accounting over 12 months for it, or do they send them 1/12 per month because of "it's not earned all at once". Who invented this idea, anyway. Either a lawyer, God bless them, or the IRS? I can't see where businesses would want to have promoted the idea since most of those sales are good as gold by the end of the year,and the waiting is just a math accting game. Am I wrong there?