Ann: Quarterly sales update, page-5

Muted reaction to the announcement. I think the market's still waiting for a big contract announcement, rather than one with several small wins. If I recall correctly, each site on average was worth $60k/yr to EVS - so they need 90 such wins just to plug their 450k/mo cash bleed. Seems like a hard ask, considering they only did 8 wins in the last quarter.

On the other hand, a single big win like a Thames Water enterprise wide contract could easily be worth several millions, instantly plugging the negative cash flow. That's what the market is waiting for I think - a contract with a major utility to supply all their sites with EVS sensors and software. There hasn't been much news about Thames since the initial trial announcement, but a possible scenario is that they're waiting to get a couple years' data on the initial sites before deciding to commit to more sites (after all, it would seem reckless to outfit 90+ sites throughout the company without first getting to know the product well) A win would I think make EVS be worth multiples of what it is now.

I got to admit I didn't think their cash burn would be quite as high, and rate of contract wins so low, when I bought in late last year. I think the share price reflects these missed expectations. But I think it's still worth holding onto in case they announce a game changer like a big contract win, or a potential acquirer. High risk, high reward.