this implies a revenue increase this quarter of $178K over last qtr for TAM if everything else remains the same. Glad they pushed to start the deal Nov 1. WalMart could have stayed with the lower rates through end of this year
55K+ trailers. No mention of cellular or switching to another provider. So that means ORBC keeps the business. IDSY did say on their Conf Call that comms rates were going down and they did say they expected double digit growth in this division. Midpoint of range indicates a comms cut. Not sure how that affects ORBC but I would assume it means lower margins to ORBC
here is new deal specifics:
on November 13, 2014, Asset Intelligence, LLC ("Asset Intelligence"), a wholly owned subsidiary of I.D. Systems, Inc. (the "Registrant"), entered into an amendment (the "Amendment") of its existing agreement (as amended to date, the "Agreement") with Wal-Mart Transportation, LLC ("Wal-Mart"), pursuant to which Wal-Mart has agreed to purchase from Asset Intelligence, and Asset Intelligence has agreed to provide to Wal-Mart, Asset Intelligence's VeriWise� trailer tracking system and related services. The Amendment, which became effective as of November 1, 2014, extends the term of the Agreement (originally set to expire December 31, 2014) through October 31, 2017. During the term, as extended by the Amendment, the Registrant's Asset Intelligence business unit will continue generating and monitoring VeriWise� system data from Wal-Mart's fleet of over-the-road freight trailers. If all products and services covered by the Amendment are successfully delivered, the Amendment would generate between $13 million and $14 million in revenue for the Registrant over its term; provided, however, that there can be no assurance that such amount of revenues will be generated, if at all.
So over 36 months. Low end avg is $361K/month. High end is avg $389K/month. Midpoint is $375k/month
Old deal was over 24.5 months $7M - $10M. Low end avg was $286K/month. High end was $408K/month. Midpoint was $347K/month
Midpoint raise is 8.1%
Figure comm prices are lower, so could have effectively seen a double digit increase in rates overall. At the high end, WalMart saves money anyway so the higher app rates are more than offset by lower comms rates.
Looks like they actually got an increase for the first time in 4 years. The current deal was $7M - $10M over 2 years through Dec 31, 2104.
This deal starts Nov 1 and ends Oct 31, 2017 (2 months earlier) and is up to $14M. Credit Norm Ellis.
how can America be BK with all the assets it has? We could sell Alaska for $3T or so. We could sell Hawaii for $1T. Rights to Guam, Us Virgin Islands, etc. Tell China they can take Taiwan for $2T and we won't get in the way.
the other simple explanation is he is a nut job.
That he decided to stay on at CDTI over CDTI is probably the most complicated of the solutions.
change of heart
Let's see if he stands for re-election next year or if they find a new BOD member soon and he leaves soon after that. If either of those do occur, then if your scenario is correct, it shows a serious deterioration of CDTI. In my scenarios, if he leaves in a few months, there is no effect on CDTI.
was at a car dealer buying a car and saw "ADP" machines that they used to print out the documents. Obviously those are the CDK equipment. Seemed a little slow and low tech but the dealer seemed happy with it.
he resigned from both boards on the same day. CDTI begged him to stay probably telling him he could be a no show. Why is that so confusing to you?
did he not know as Chairman that those patents were filed years ago? You act is if the acceptance of the patents changed his mind.
Institutional holds down 160K for the qtr. Price was up for the quarter. Considering the selling by the two largest holders, stock did well.