This is a lot better than what I thought. Good revenue and cost...

This is a lot better than what I thought.  Good revenue and cost control.  Also take note of the following comments in the commentary.  Could we see operational cash flow being positive in the next 9 months?  They are expecting cash flows for next period to be 888.  So if they can increase revenue by around 25% QoQ we may have a gem on our hands.


The Company made a strong start in just under a month in the quarter since listing on the Australian Securities Exchage (ASX). Revenue was just over US$400,000 giving an indicaton of the potential for the Elsight secure communications solutions in the market. The revenue result is a combination of: new orders, repeat business and ongoing service and license revenue from existing installations. Costs for the quarter are not indicative of ongoing expenses, being mainly made up of costs leading up to the company listing on the ASX. As outlined in the prospectus issued earlier in 2017, funds raised are being deployed in two major areas: • marketing and business development; and • R&D: Shrinking the technology for integration into OEM equipment and developing required new capabilities in an effort to win tenders on performance and feature rather than pricing. In June, the Company expanded its sales team with the acquisition of three senior regional sales managers responsible for major geographical regions: North America, Asia Pacific and Europe Middle East and Africa (EMEA). The Company is pleased to note an immediate result from these hires in the form of a strengthened direct sales pipeline, advanced discussions with new channel partners, and invitations to tender for important and large public projects. The Company is also hiring new engineers (typically starting to be productive after around 3 months). The Company is planning to expand and enforce its technical and post-sales support capabilities in anticipation of an increase in sales into new territories. The Company has an historically high win rate for bids in which it participates, but it is too early to forecast revenues from the sales pipeline. At the very least, the Board is confident that not only will the current level of revenue generation continue, but that it expects that it should significantly increase into the second half of the calendar year.