Member Info for marketmover

http://www.matrixtelematics.com/

Ahmir,from the RNS,there`s another one, Matrix . "SerVision's R&D team will continue to integrate with other leading technology companies in the global transportation sector. Among other things, our cooperation with Mobileye and leading telematics companies (Matrix, Ituran, Gurtan, etc) has enabled us to: · Become more competitive in terms of system performance and functionality · Learn about and pursue new commercial opportunities · Reach new potential customers who are looking for a fully integrated solution (as opposed to our stand-alone solution) We will continue to expand our cooperation with new technology partners by adding support for other third party solutions that are relevant to fleet operators. As noted above, we have recently integrated with a passenger counting system for bus applications, and we are now beginning to investigate support for a geo-based mobile advertising system. In parallel, the company's R&D team is investing considerable resources in building the necessary infrastructure to enable a web-based monitoring platform for customers who wish to use our solution as a stand-alone platform, and in creating a user-friendly API for technology partners who wish to integrate SerVision's protocol into their software."

The more integrations with these big players,the better.In my eyes,they are endorsing the fact that we have something of value that they currently don`t and that this can bring additional value to their clients and keep them at the cutting edge.Equally important,they must be seeing a market and potential revenue share with us.

On a first quick forage for info,I havn`t found much on Gurtam`s financial clout other than a reference to a possible IPO (2013) on the NYSE but can`t find anything on the ticker quoted at the time (GURT) so maybe it didn`t go ahead or something has changed since.They must have a few roubles with a presence in 130 countries. Interesting.I`m all for a bit of competition for Mobileye. imho etc etc

Strange you say that Seabass as my first thought (although I didn`t refer to it in my post) was, I wonder if this might give Mobileye the collywobbles.I sincerely hope it does ha ha.

Nice spot Ahmir. This conference will give terrific exposure to 950+ Gurtam partners in 130 countries so good luck Gary. IMO this beats teaming up with small time distributors (with one or two exceptions),increases exposure and enhances the business model.No more small fry,straight to the fleet management industry movers and shakers.Integrate then sell. Cascade to take options early would be nice but nevertheless, I am liking some of the positive signals coming out. imho etc etc

Yep Ahmir.Spread in.Looks like the MM`s are ready to move this with buys and the cheap stock they picked up has now gone. imho

Morning Brand. Very possible that some of the Cascade cash has had to be "ring-fenced" to support tenders. I`m not keen on seeing too much more equity financing and double dilution to compensate Cascade.Debt financing carried on the balance sheet if absolutely necessary. IMO ,the Cascade options are there to avoid the above.There must have been extensive discussions and a good look at projected requirements when the investment package was put together including the options.If they take the first option early or at all,then very positive signals. Off on a slight tangent,pleased to note that ongoing customers are being asked to upfront 50-100% of the cost of orders before shipment and letters of credit required from less stable regions so effectively bank guarantees. As far as new contracts go,I`m assuming that we will also require a decent percentage upfront alongside a payment plan and effectively providing credit facilities is kept to an absolute minimum. A re-sheduling of the repayment date and no conversion re: YA would be welcome

Would defo send out all the right signals Thorp

Interested to see if Cascade wade in sharpish with that initial $2m option well ahead of its expiry in October.Would double their investment.In for a penny in for a pound........

Morning mate. Just admin,re-appoint auditors,accountants etc and sign-off on Cascade`s options.

partners. In conjunction with the co sales plan currently being put together,will be interested to see how quickly we integrate with other Mobileye partners after Ituran.No point in just introducing/recommending us to one. Some potential candidates in the link below (includes Ituran) at the bottom of the page. http://www.mobileye.com/en-us/technology/telematics-integration/

2 situations running in parallel here.The first is the ongoing development of the core business,new contract wins,outcome of tenders etc. The second is the developing Mobileye relationship including the Intel T/O in Nov/Dec and whether this is a catalyst for some serious action here. Throw Cascade`s premium investment and potential options follow-up into the mix and we have some interesting times ahead. All imho.Dyor etc Cheers

Yes mate. Nothing a few contracts won`t sort particularly UK and Israel based with recurring revenues or a very meaty overseas one would do nicely.

Ahmir, to give an idea of costs per revenue generated,our revenues 2016 were $2.145m and cost of sales $1.588m so costs are 74% giving a gross profit margin of 26% (2015 42%).They mentioned that our margins are being squeezed particularly UK to gain entry into the bus and coach market.Recurring revenues etc on maintenance and service apply to UK and Israel where they expect to make some margin back. As an interesting comparison,Ituran has a gross margin of 42% (first quarter results 2017).Looks to me like some questions need to be asked as to whether we are underpricing the product and costing it correctly.We don`t need to be 30% cheaper than everyone else if we have the top dollar industry leading product to sell and with the kind of overheads we currently need to cover. Gives an idea of the level of financing we will need for tenders/new contracts. All imho etc

Yep Ahmir/Thorp....a couple of decent buys there...same buyer given only a minute between them ? Seen the following comments many a time.....but always worth a refresh particularly with this Ituran integration:- Craig Flashner, a Director of Cascade, said, "We are very pleased to be investing in SerVision. The worldwide mobile DVR market is growing dramatically and we believe that SerVision has superior technology in this market. In addition, we believe there is significant potential in their relationship with Mobileye, which opens access to their customers worldwide."

here.If Mobileye are introducing/recommending us to their own partners,they are going to want that recommended add-on service to remain constant so as not to compromise their own relationship with their partner.I wonder what the best way to protect that position might be.......? If we are working on a sales plan with Mobileye (presumably on a split royalty basis) then they must have full confidence in Sev`s product and the ability for it to sell. All imho etc

Reporting for duty Brand......

I kind of overlooked this when the dark clouds descended.They are a Mobileye partner so I assume Mobileye has introduced /recommended Sev to Ituran,which is a very acceptable endorsement..Ituran has over 1m subscribers and operate predominently in Israel,Brazil,USA and Argentina returning revenues of $200m per annum.Quoted on the Tel Aviv stock exchange and the NASDAQ.Stolen vehicle,Fleet management and tracking services. Looks like another Mobileye type arrangement where we integrate our tech on a compatibility basis to be sold as an added value option.Ituran is a very decent "partner" for Sev and I`m wondering if this is the kind of exposure to Mobileye`s client base that Cascade were excited by.Slowly slowly catchee monkey. Couple of links for those interested:- https://www.ituran.com/ituranfront/en/about-ituran/ https://www.ituran.com/ituranfront/wp-content/uploads/2017/05/Ituran-Results-PR-Q117-final.pdf Cheers

Upon reflection,I`m also holding with you boys.Essentially, the reasons for my investment havn`t changed ie Cascade are in at a significant premium and I don`t think they are in the business of throwing $2m (poss more) down the swanee.They have said that they are particularly excited by the Mobileye relationship and exposure to their clients so,imo,this is where they see a return on that £14m valuation.Be it a sale to Mobileye or otherwise. This business doesn`t stand up on a fundamentals basis,high cash burn,static sales growth (to date),high operating cost base,inherent losses and a tendency towards constant R&D additional expenditure , permanently refining a product which is already said to be industry leading and has multi-user clients.There is an inflection point at which this must change and the focus has to be on reducing costs and going hell for leather on a sales drive.IMO that time is now,sell the product in its existing guise and follow later with the software upgrades etc......get the product sold and the revenues flowing. Now,having said the above,Cascade were fully aware of this and have still stumped up $2m.We can`t have waded through an additional $2m in 3 or 4 months and I am not convinced that it costs this much to put together a few tender documents.So where has this cash gone ? The answer,I hope,is that it is needed to fulfill an order/s and that there is something currently in the offing. So,in summary,I`m still in until I get a bit more clarity.I draw a bit of comfort in the knowledge that GT has unsecured loans to Sev of $300,000 on the balance sheet and G.Sasoon $1.2m.They will want their dosh back and a bit more...........big motivation. All imho etc Cheers