EMPLOYMENT AGREEMENT AS PRESIDENT AND CHIEF EXECUTIVE OFFICER
3. SALARY / BENEFITS.
In addition, as Additional Salary, SteelCloud shall pay Employee an
annual bonus of up to $100,000 per year if SteelCloud exceeds the Financial Plan
during a fiscal year in which Employee served as President and Chief Executive
Officer of SteelCloud. The precise amount of the Additional Salary shall be
determined in the reasonable discretion of the Board of Directors. SteelCloud's
Board of Directors may also grant Employee additional bonuses in its discretion
based on its evaluation of Employee's performance.
We very well could be tied to Lockheed's news today.
The Air Force is modifying an undefinitized, cost-plus-fixed-fee contract with Lockheed Martin Corporation of Sunnyvale, Calif., not to exceed $75,000,000. This undefinitized contract action will authorize Lockheed Martin to conduct additional Risk Reduction and System Definition (RR&SD) baseline efforts as well as adding two tasks. First, they will perform an Industrial Base Impact Study which assumes a Transformational Communications Satellite System (TSAT) Development and Production contract start date of 1 July 2008. The study will include the assumption of a start date 6 months thereafter through a total delay of 24 months. Second, they will develop system definition and design concepts and present the results in the form of an Interim Design Review (IDR) for two Government-provided alternative TSAT program requirements sets (TSAT “Digital Core” and “TSAT-Lite”). The prime contractor for this effort is effort is the Lockheed Martin Corporation. Approximately 33 percent of the work will performed by Lockheed Martin Corporation, Sunnyvale, California. The remaining 67 percent of the work will be performed by subcontractor Northrop Grumman Space and Missile Systems Corp, One Space Park, Redondo Beach, Calif., 90278. At this time $37,500,000 has been obligated. HQMCSW/PK, El Segundo, Calif., is the contracting activity (FA8808-04-C-0023/P00047).
Murphy gets a 5% product funding bonus. He got 100k options back in October, so I'm guessing this current grant of 125k may in fact be the product funding bonus. If that's the case, then 125k * 1.35 = $168750 bonus? If that's 5%, then $3,375,000 is the 'product funding' or the total amount of a possible contract?
May get some kind of annoucement leading up to earnings or when earnings are released. Either way, the option grant needs to be addressed, otherwise, his grant back in October was the product funding bonus and this grant is just a normal yearly grant?
Mr Frick mentioned that options will be based on performance, right? or I'm wrong?
He obtained 125k additional options. What his contract mentioned regarding that? remember?
I don't know, but seems to me that something is coming.
$6.50 seems high to me---perhaps 2-3 years from now?
Although there are a lot of risks here (see S.E.C filings),
and everyone should due there own due diligence,
my target price goal/guess of $2.80
in March of 2009---I am guessing $.20 E.P.S.
in fiscal 2009 and 14X P.E.
If achieved, this would work out to an annualized
rate of return of approximately 133% from current levels.
I hope the derivatives the board and other company officers got have a stock performance price attached to it. I would still like to see some open market purchases by the ceo. Earnings need to be positive for this stock to remain positive. Still looking for the value of the postal contract. Luck to all.
...tough to say. I would expect a near breakeven scenario, maybe even cash flow positive. I also expect them to remain positive on full year earnings. The past problems/reorganization issues are behind them so we should not have to review dismal past. The key statements will be about penetrating new markets for their products, as well as the filling the pipeline and closing on some multiyear deals that help smooth q to q sales fluctuations. The Admiral is all business...I would not expect fluffy statements, but only the facts. He is the right leader for this company, and it was somewhat of a lucky stroke that we got him.
I'm more optimistic on revenues than I was a month ago. I guess revenues of $8mil + or - $250K.
I still think earnings will be positve in the .02-.035 range. What I think will be a big surprise though will be a rapidly expanding backlog that will project $10mil or more of revenue this quarter. I too expect to hear that we are in the black for the year.