Investor lunch29 Oct 2018 12:46
A couple of months ago the new CEO did a series of investor lunches, introducing himself, explaining the company products and future pipeline and laying out his vision for the company. Full time investor 'Smudgedan' went to one and here are his notes which he has kindly allowed me to post,
'A few points from today’s presentation. Apologies for the ramble. About 8 PI’s there. David Smith gave details of his background which seemed to be more extensive than what was presented by RNS. He liked the opportunity at FBDU as his preference is to ‘work things out for himself’ rather than be told. He met Trevor Brown through one of Bravehearts investment companies Paraytec who he was doing some work with on bladder cancer. His deal is largely equity based, so he is aligned with us. As mentioned earlier it seems that whilst stonechecker has great potential, the real winner could be the brain scanning software of IB which I think will be extended to other areas. Liver was mentioned as achievable with minor tweaks. His plan is to deliver revenues of $20m to $30m annual within the next 2 to 3 years on existing products but double that with ‘planned’ products. They have a part time software development team in the US and have employed two more people to speed up the process. Their sales are mostly done as a result of conferences and online. There is a free trial and the current take up is 30% which I thought was good but he was disappointed with. The biggest competitor for IB on brain scans is Nordic Blue? (Or something similar) but their product is inferior. Part of the Mayo clinic was using their product before IB. They hope to have the cloud up and running within 9 months and will use google, Microsoft or one other to administer. Google are very keen. They are fully funded for at least a year based on current projections. The only reason to come to market would be to help fund an acquisition. He mentioned the possible need to land grab in order to build the business quickly at which point they would probably be taken out by GE or Phillips who provide the hardware but have shitty software that is 20 years old in many cases. H1 F18 revenue is £126k which is more than the entire F17 number (£116k). The competitor Dan alluded to is Nordic Ice. The Mayo clinic have compared our software to Nordic Ice’s and found ours superior. The other cloud Partner in the beauty parade is Oracle, so the big 3 full house. The gross margin is 85% Likely exit strategy via takeout by Phillips, GE or Siemens. FDA approval for Stonechecker anticipated around thanksgiving (late November). All in all, very impressive. I bought more today.'
The thing that really stood out was $20-30million of revenue in 2-3 years. If they manage this, company valuations will dwarf today's market cap.
Sign In
Follow the stocks
