I thought that was a mistake too but I have the old presentation and new presentation open at the same time and looking right at it.
The pace at Home Depot seems low. So many accidents and deaths of employees and customers. They need to pick up the pace. i wonder if WalGreens will expand to Boots now that they merged.
based on the latest presentation compared to last, here are 2014's largest VMS purchases:
Home Depot 600
General Mills 400
major changes. many new slides
- price change on Powerfleet. used to be $2500, now $1000 + $25/month. Takes 5 years to get to $2500 but it then keeps paying after that.
- new VMS customers named
GM is the auto
United is the airline
JNJ, Eaton, Supervalu, Staples, United Technology, CNH
- new TAMs customers
Ashley furniture is the furniture company
FEC, Hobby Lobby, Brown, Compass Lease, Trac Intermodal
- Raymond was 15% of 2014 revenue or $6.84M
- new VMS opportunities
Airlines. American expanded to Miami and United is the new customer
DoD - Have RFP's for 1K and 12K units. So DoD is not dead. This could be huge, a 12K unit win is $30M
- comparative to other M2M companies
should be between $12.49 and $14.05
Many other nice pieces of info such as the number of units at the largest customers (Home Depot now at 2200 units, 3rd largest VMS customer), breakeven is $52M run rate. Will be GAAP profitable end of 2015 (new initiative pushes this out 6 months)
- Largest VMS customers:
WalMart 9K units
Home Depot 2.2K
Nestle, P&G, Walgreens 2K each
Deere, CAT 1K each
there are a few good articles on seekingalpha about this deal. One has a NPV chart. At $1200 gold the deal is negative $100M (pretty bad). At $1300, it is break even. Why would they initiate a deal with a negative NPV? Are they trying to justify their salaries? Just a foolish deal
I remember you, BTW. Hope al is well
I understand that but to an outsider it just seems like the company is failing to get to profitability. They should have waited 6-12 months to do this.
Q1 2014 was an under $10M quarter. With the growth numbers they are talking, it sets up this Q1 for maybe $11.5M? Seems disappointing
I thought the same thing....didBox. Too bad the VAC4 only does PowerFleet and PowerBox. If it did didBox as well, they could upsell after a time with minimal interuption
TAMs has barely grown since they bought it. It did seem to grow faster since Norm started though we did lose a few key wins.
People are dying in warehouses from forklifts. You mean to tell me cost is holding back these companies from saving peoples lives? Wouldn't want to be on the end of a lawsuit on that.
I would have preferred that they go to this new service model AFTER being profitable. All they did was push out profitability....again. Why couldn't they have waited one more year? They said Norm initiated this. Does he not have any common sense re shareholders? He was in a bubble at Qualcomm. He is in the spotlight here.
thought they said $52M was break even. Wasn't previous $50M? That would make sense. Also said did not need any cash
Stock will move up from here. We get the Toyota news during ProMat in a couple of weeks
"Another key metric for I.D. Systems is our expanding penetration of the rapidly growing VMS market. In 2014, we shipped more than 8,500 VMS units, which increased our installed base by almost 20% compared to 2013. As we transition our business to a more service contract-centric model, we expect our revenue growth rate in 2015 to be consistent with 2014. However, we anticipate a more significant year-over-year increase in unit shipments in 2015, which we expect will increase recurring revenue and gross margin in the longer term.
they made the statement at the Raymond James conf which was available in realtime for anyone to listen to. What's the company worth though? No patents. In many lawsuits for patent violations. Overstaffed. Customers are cutting back due to oil/gas exposure. who would buy them? Very limited amount of companies that would be interested.
The POP may have already occured