| From: aknahow | 8/4/2016 4:24:52 PM | | | | | | Not pretty, but the explanation works for me.
Six months ended June 30, 2016 Compared to the Six months ended June 30, 2015
The Company’s fee income from licensing activities for the six months ended June 30, 2016 was $653,564, as compared to $1,182,891 for the six months ended June 30, 2015. A substantial majority of this decrease was principally the result of non-recurring fees earned last year associated with the Company’s participation in the Milan Expo, and non-recurring fee income under several licenses in 2015. To a much lesser extent, fee income from automobiles and aircraft using the Company’s technology was lower in the first half of 2016 due to: (1) lower production levels of certain car models in the first half of 2016; (2) lower costs to the OEM (and therefore lower royalties per car to the Company) for glass incorporating the Company’s technology on certain car models, and (3) a design improvement in certain aircraft that caused a short-term reduction in new window installations. These factors were partially partially offset by (4) higher sales volumes on other car and aircraft models using the Company’s technology. The Company believes that the temporary factors causing reduced royalty income in the first half of 2016 to be short term, and the Company has been informed to expect increased production of vehicles in automotive and aircraft using the Company’s technology, as well as higher take rates on all cars offering the Magic Sky Control option, starting with the second half of 2016 when the 2017 model year cars are produced by Mercedes-Benz. In the first six months of 2016, the Company received royalty revenues from sales of the Magic Sky Control option on the S-Class Coupe, Maybach and S-Class Sedan, and SL and SLK/SLC roadsters in excess of the minimum annual royalty levels for the two licensees supplying products using the Company’s technology to Daimler. As such, royalties from these five car models will be accretive to the Company's royalty revenue. Production efficiencies are expected to continue and accelerate with the introduction of the higher vehicle production volumes for various car models going forward, and the Company expects that lower pricing per square foot of the Company’s technology could expand the market opportunities, adoption rates, and revenues for its technology in automotive and non-automotive applications. The Company expects to generate additional royalty income from the near-term introduction of additional new car and aircraft models from other OEMS (original equipment manufacturers), continued growth of sales of products using the Company’s technology for the marine industry in yachts and other watercraft, in trains, in museums, and in larger architectural projects. |
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| To: davegreen who wrote (18203) | 8/4/2016 7:58:46 PM | | From: JubilationT | | | | | Disappointing? Yes, but expected as much. CC did mention partitions. Something new there. Looking forward to second half with production ramping up and take rate. Many things still shrouded in secrecy. |
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| From: aknahow | 8/4/2016 8:36:07 PM | | | | | | I think the near future looks bright. Very easy to say, "we have heard all this in the past", but that really is not correct.
- The Company believes that the temporary factors causing reduced royalty income in the first half of 2016 to be short term, and the Company has been informed to expect increased production of vehicles in automotive and aircraft using the Company’s technology, as well as higher take rates on all cars offering the Magic Sky Control option, starting with the second half of 2016 when the 2017 model year cars are produced by Mercedes-Benz.
- Production efficiencies are expected to continue and accelerate with the introduction of the higher vehicle production volumes for various car models going forward, and the Company expects that lower pricing per square foot of the Company’s technology could expand the market opportunities, adoption rates, and revenues for its technology in automotive and non-automotive applications.
- The Company expects to generate additional royalty income from the near-term introduction of additional new car and aircraft models from other OEMS (original equipment manufacturers), continued growth of sales of products using the Company’s technology for the marine industry in yachts and other watercraft, in trains, in museums, and in larger architectural projects
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| To: aknahow who wrote (18207) | 8/4/2016 9:31:39 PM | | From: N. Dixon | | | | near-term introduction of additional new car and aircraft models from other OEMS I like "near-term" "new.....OEMs"
That's new in aircraft and automobiles.
None of that is in the current stock price. Unreal bargain prices now that won't be available later in the year.
ND |
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