Wording of the RNS22 Mar 2019 17:14
Starcom (AIM: STAR), which specialises in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets, provides an update on the agreement with WIMC Solutions Inc ("WIMC") that was announced on 23 January 2018 for the sale of Tetis units.
The original agreement entered into was for the supply and support of Tetis units for the monitoring of containers by WIMC, a US-based provider of real-time monitoring services of international container movements.
To date, WIMC has placed orders for only 1,500 Tetis units under this agreement and these were delivered to WIMC during 2018. Although this number of units is less than previously indicated, following successful testing of the Tetis units in the field and acceptance by end customers, the Company has entered into a new agreement with WIMC, replacing the previous agreement.
The new agreement, commencing from March 2019, provides for an increased potential order of up to 30,000 Tetis units over a three-year period while at the same time having a slightly reduced unit price payable to Starcom, but still including ongoing SaaS revenues from each unit installed. There is no obligation for WIMC to order any units under the agreement and therefore there is no guarantee that WIMC will ultimately order the maximum number of units indicated under the new agreement, but WIMC has indicated that it expects order levels for 2019 to be up to 3,400 units, which would have an aggregate value of up to US$660,000 (excluding ongoing SaaS revenue).
Avi Hartmann, CEO of Starcom, commented, "We are pleased to see WIMC indicating satisfaction with Tetis and planning for larger potential orders. Tetis is one of our 'growth engine' targets and this positive feedback from WIMC is reassuring."
Well I have to say after reading the latest RNS , it sums up why this company is where it is.
Wording like POTENTIAL - INDICATING - NO OBLIGATION - NO GUARANTEE- EXPECTS
A good sales team should be nailing down solid fixed contracts, the city has no time for the above wording in contracts because it means nothing.
I am in this share at a loss right now and i keep on dreaming like the rest of you , but the longer it goes on the fainter the dream becomes.
I look forward to your views on my opinion and i expect the SPINNERS to be out in force.