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| Subject: I noticed a press release from Cubicrollout of San Fransisco hardwareearly 2003. | |
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Author: ERG will start earning big dollars |
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Date Posted: 19:36:30 01/10/03 Fri Posted by: lost Nov 9 2002 8:54:04:700AM Reply to post #2922 by salus Go to Post # Previous Respond Message List Next Hi Salus and everyone, ERG was awarded the Seattle contract in October 2001. They are still negotiating the final contract with the Seattle transit authorities. Would expect an announcement of final contract in the next six months. Based on Rome contract it will take eighteen months to negotiate final contract (imagine that it takes time to work out what they want) and a further 12 months to roll out the new system. Positive news for this is that it will all be cashflow positive from day one. I think that Sydney may be announced in four months and work will begin, but I am not sure what impact the court case had on contract negotiations (ITS awarded contract in August 2001). Do not believe that it had any major impact, so ERG may not be able to sue for any money. If it takes longer for the Sydney contract to be signed then ERG may claim some money back from Cubic. I noticed a press release from Cubic which said that the rollout of San Fransisco hardware will be completed by early 2003. ERG will start earning big dollars once this has been completed as they act as the smart card issuer and clearing house for the settlement of transactions. Here is for a good year this year and a great one in 2003/2004. By the way, was reading through Etrade website and noticed that Aspect financial are forecasting 44% growth in revenue in the current year. The average over the past ten years is 34%. I thought previously that ERG will make $10 Million profit this coming financial year, however if ERG revenue was to grow by 44% instead of 34% then profit this year will be an additional $30 Million or $40 Million (based on previous posts). I believe that 34% is the right figure and 44% is a bit optimistic (would be very nice). Best of Luck Lost (Voluntary Disclosure:Position Short Term rating:Buy Long Term Rating:Buy) OZeStock Advertisment:"Get yourself an institutional advantage!" Previous Respond Message List [ Next Thread | Previous Thread | Next Message | Previous Message ] |