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USA Technologies Inc. Message Board

  • jipadave jipadave Jan 30, 2013 9:38 AM Flag

    More Fun With Numbers

    Good Morning Pumpettes!

    After you recover from the hangover after the "First Profit" celebration, have a look at these numbers as it may be the last party you attend.

    Across the board, this quarter was an ongoing DISASTER for USAT customers.

    Sales per connection dropped to $274/conn. That's a number that hasn't been seen the Dec10 quarter.

    Transactions per connection dropped to 156/conn, almost 10 percent from LAST QUARTER, and again, has not been that low since the Dec10 quarter.

    This shows that as operators expand cashless they are seeing less and less return.

    The CFO stated that "from our analysis of 50% of the transactions" that cashless has accounted for 33% of sales. First of all, I don't see how they can draw this conclusion without having telemetry on all of these machines in order to see the cash sales. I am pretty sure that the majority of USAT customers are not using the telemetry solution or we would have heard about it in fluff pieces. If we accept this at face value, this is BAD NEWS for operators since the numbers show they are not covering costs by increased volume. They are actually killing the bottom line with each cashless sale!

    Now, the important question.

    Is it worse to take twenty years to log your first profit or to drift back into unprofitablility the following quarters??

    With the outsized compensation that is going to come from hitting this "milestone" and the fact that the contractsigned with the 10 companies that gave up their right to walk for three years will be in fulll effect for the entire quarter, it will almost surely erase any chance of making a profit next quarter.

    Good luck and keep buying.

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    • lol...You have no clue about USAT, They all have telemetry! You also can't use your connection numbers because you don't know when in a 3 month period the 12000 units were installed and you don't know what it's installed on.

      • 5 Replies to slvfx
      • slvfx,
        what power you possess the whole hornet nest comes out when you post.....
        and not one of them wishes you well on your patience and success?

      • Foxy, I just researched your "they all have telemetry" comment. In fact, that is BS!!!

        From the USATECH website:

        ■Multiple telemetry hardware options to choose from

        This implies that the telemetry solution is an add-on HARDWARE solution.

      • Foxy!! I'm glad you got the opportunity to LOL!

        Sales per connection dropping, transactions per connection dropping, and the company focused on small trials where USAT shareholders spend the money so customers don't have to, instead of on increasing units within existing customers. All sounds pretty bad.

        But you should totally LOL. Silly jipadave must be missing the point on how great USAT common stock is. You must be buying huge what with all the good news.

        Oh, wait, I forgot, you refuse to buy the common--you like the preferreds and warrants you got given. Your stated strategy is for USAT to "go out to the capital markets one last time" to dilute the shareholders, "lock down the industry," and then, um, maybe, um, yeah, um someday USAT can start doing share buybacks!

        Anyway, I admire you, Foxy. You didn't get suckered in like the other pumpers. They say you're dumb for missing the big run up from $1.40 to $2.10, but you know better. You know that those gains will go poof when the next round of dilution comes along. So I say YOUR [sic] the smart one.

      • Foxy, you constantly amaze me with your lack of insight and ability to analyze an issue. But, then, I guess I shouldn't be surprised as you were one of the first to fall for this ponzi scheme. And, most likely, one of the biggest losers to date.

        They all may have the CAPABILITY of telemetry but that is a whole different animal then actually PAYING for the telemetry service. You can not tell me that every transaction on a machine goes thru the eport device (cash & cashless) unless the operator requests it, has it wired for, and pays for it in order to track. As an operator, I would never let a third party monitor all of my activity unless I requested it. But, as I stated, if you take them at face value, assuming they have these transactions, it doesn't paint a rosy picture for cashless.

        As for when connections were turned on in a quarter, it doesn't really matter as EVERY quarter has new connections so it averages out over time. In any event, if USAT can count them as "connections" even if they aren't hooked up then they are fair game in calculating averages. Like I previously stated, if Herbert gave the actual PAYING connection numbers these averages would reflect better in his favor but would highlight the fact that customers have returned connections. And, we all know that will never happen when their out-sized compensation depends on the bigger numbers.

      • congrats to you slvfx! we have achieved profitability!

    • Very troubling numbers!

      Also, quite hilarious how they mostly offer just cashless processing, but they've taken to using the phrase "cashless and telemetry" all the time to make it sound fancier! Their ePorts may do almost nothing other than serve as a crack for swiping, they may not have vendor management, and all the talk of smartphones and couponing may be a silly pipe dream, a space where USAT is even less necessary, but by golly, they can certainly toss around the word "telemetry." Maybe it will trick faughnan into thinking USAT is a "tech company." Ah ha ha ha!

    • Herbert stated that tehy have only penetrated 10% of their install base locations. With almost all new connections coming from new customers, why such a meager penetration if cashless is such a game changer?

      You have to assume that those 10% represent the cream of the crop for cashless locations. With transaction volume stagnant, that says a lot about the health of the market for cashless.

      With transaction processing operating at cost, I can't see how expansion into "wallet" apps will improve the bottom line without the benefit of the hardware rental revenue.

      I can't wait to see the market reaction when this turd swirls back into unprofitability. I hope Pathfinder, Fraughman and the rest stick around for the ride so that they can tell us how smart they were.

      • 1 Reply to jipadave
      • Ask ANYONE in business… selling more to your base is 5-7 times easier and cheaper than getting a NEW customer.

        Why haven’t they further penetrated their customer base and why the focus on new customers for growth???

        As always, the numbers and the “story” just never add up!!!

        And I agree with ALL, they will need more CASH and Q3 will drop back into the red. This will be fun to watch!!!

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