RE: Gross Margin of 99%??23 Jun 2014 15:22
Libero ........ Since the Ericsson partnership they have won two contracts together, GVT in Brazil and Axtel in Mexico, both contracts are for Mira’s Navi product which was designed to be used via IPTV ……. since then they haven’t won any new contracts with Ericsson, whether there are negotiations going on in the background is anyones guess.
The reference to 99% margin on the licence fee is because there are no costs to speak of in collecting the fee ………. basically once a new contract is won Mira charge a product fee, in the case of the new contract that was somewhere around $1.5m from memory, after that if the customer wants upgrades or new services then they pay extra …….. the cherry on the cake is that while they are using the Mira software every subscriber signed by the customer releases a one off subscriber fee
Until we see more detail in the results for the large contract we can only assume that the fee is about the same that is received from other customers such as GVT and that figure is about £3 per subscriber …….. hence a customer with millions in subscribers already which will be upgrading to use the Mira software is lucrative to Mira