Falanx Share Discussion Threads

[jailbird] 20/12/2017 14:19

Probably 500k left at best These IT consultants and BoD are being paid a lot of money

[jailbird] 20/12/2017 14:18

Look at the cashburn .. are you deluded... if breakeven met .. that is a BIG if , means Co will still need cash .

[kaka47] 20/12/2017 14:10

Yet again Yump is unable to read and comprehend simple things

[j777j] 20/12/2017 13:46

Keep an eye open for some new year tip sheets.

[hurst10] 20/12/2017 13:24

Press coverage on it's way
Upgrades on it's way
8p by Friday
More contracts on it's way
Wheelbarrows on it's way ( to carry out the shorts)
Two parked in Moorgate outside a certain market maker
Enjoy

[yump] 20/12/2017 12:36

Given that MidGard was going to make their operation more efficient (ie. in house tech. rather than 3rd. party, then the following is a possible explanation of the 'doubling' comment:

FLX are MOVING their existing clients onto MidGard, which obviously would double the number easily.

However, they refer to the strong pipeline of potential clients giving them assurance of doubling.

So that makes no sense either.

Investors should not have to go to this trouble, its quite shocking.

[yump] 20/12/2017 12:32

The comment about doubling is within the MidGard heading:

MidGARD Managed Service Update

"The MidGARD managed security service 'proof of concept' (POC) phase has been successfully completed on time, with commercial roll-out now in process. Clients are now being on-boarded to our industry leading platform which is comprised of our own intellectual property and third-party technologies. Early adopting clients are now converting to full implementation with more enterprise class clients in active negotiation to receive the full MidGARD service under multi-year contracts. The strong pipeline of potential clients provides the Board with high levels of assurance of doubling the number of current managed service clients within the next quarter. The MidGARD managed service benefits from high margin, strong cash generation and a significant level of automation. Annual contract values under such multi-year contracts are expected to be typically between GBP50,000 and GBP300,000 dependent on individual customer requirements and services delivered."

So as far as I'm concerned the doubling concerns MidGard, not doubling the 29 clients they had before MidGard was launched.

Given the lack of contract flow like the £250K one, the chances of doubling the 29 in a quarter are zero or less.

The chances of doubling the number of MidGard managed services is much higher, but there are an unknown number of existing clients.

Now if, as any company that was actually concerned to let investors know what was going on, FLX told us how many existing MidGard clients there are...

how likely is that ??

Oh, my bad, it must be a secret and competitively sensitive.

[nearlythere] 20/12/2017 12:30

All below IMO

The RNS is as good as it gets, no fluff at all, I ask for details and I could not have expected more.

A big contract is in the bag with the value of the contract provided and this

"The Board is pleased to announce that it has been appointed as the preferred supplier of cyber security services to a Global 50 Financial Services organisation, after a highly demanding and competitive selection process amongst numerous major cyber security vendors"

It was a major concern of mine that falanx would be seen as too small, it seems that the product/ price/ package was more than enough to win over the customer even with major vendors in play.

I even got this " own intellectual property", which imo means they have something others do not.

I said they needed to deliver X and they have provided X++ inside short time frame.
Breakeven still a great target and I can now see how they could get there.

[wskill] 20/12/2017 12:07

Double the number of clients in the next quarter each paying 400k to 50k so from 30 or so before we have info of at least 60 at the end of this term.Shall we say an average of 100k each an extra £3m in revenue looks good to me but I have been wrong before.

[colinzeal] 20/12/2017 11:58

Can you not read?! How many times does the company need to tell you they're on course to b/e before you take this information in. Some people on here are utterly idiotic.

[tsmith2] 20/12/2017 11:55

sounds like ramping coming up ahead of a placing...Look at cash burn..

[martinc] 20/12/2017 11:21

Yump: back in May cyber defence had 29 "significant clients".

[hurst10] 20/12/2017 11:14

Just remember the DD this global 50 Financial institution had to make prior to engaging with any sort of contract with FLX
Overseas company !!

[sclper] 20/12/2017 10:52

To win a 2 year contract with a Global 50 financial services company is extremely bullish news. If Falanx is capable of doing that it is very likely it will be able to secure many other contracts.

The company has reiterated its guidance, of break even by the end of March, on several occasions so it will almost certainly achieve this. The company now looks very cheap after today's RNS

[yump] 20/12/2017 10:26

Can you please include the current number of clients from the statement.
Thanks.

[nw99] 20/12/2017 10:18

The strong pipeline of potential clients provides the Board with high levels of assurance of doubling the number of current managed service clients within the next quarter.

[j777j] 20/12/2017 10:06

The bitter numptys that sold at a massive loss,probably with borrowed money,are clearly in a rage.Mike Read has a track record of selling co's and making money

[jailbird] 20/12/2017 09:39

I would say cash call in Jan or Feb 2018 based on current cash burn Correct me if my figures are wrong End of March 2017 - 430k May 2017 - ?2m raisedEnd of September 2017 - ?1m balance So they have spent ?1.4m in 6 months 6 months to potentially achieve breakeven - End of March 2018.They will look raise cash when the have a few 100k left .. when will that be on current cash burn ?

[yump] 20/12/2017 09:32

I think its a surprise that there actually are MidGard clients - that information wasn't out before.

Seeing as they are 'boasting' about doubling in the next quarter, it would seem reasonable to expect to know how many clients.

Unless its one of those statements that looks good in a comparison.

As in "revenue has increased by 100% over the last year"

(from £100K to 200K)

We've all seen those haven't we?

[bobdown2] 20/12/2017 09:29

A good r.n.s. It's best to buy on aim when contracts are announced and the share price is flat on its back....dyor...

[jailbird] 20/12/2017 09:25

Good post PaddypoolSpot on !

[yump] 20/12/2017 09:24

Paddyfool20 Dec '17 - 09:21 - 3653 of 3654

"So what is the purpose of the announcement? It is in my opinion to drive the price up in the retail area so that they can get a rights issue away."

Nice to see someone as cynical as me, as I was pondering that as well.

[jailbird] 20/12/2017 09:23

Correct me if my figures are wrong End of March 2017 - 430k May 2017 - £2m raisedEnd of September 2017 - £1m balance So they have spent £1.4m in 6 months 6 months to potentially achieve breakeven - End of March 2018.They will look raise cash when the have a few 100k left .. when will that be on current cash burn ?

[paddyfool] 20/12/2017 09:21

hmmm so we win a contract...no we don't we are the preferred supplier. What this means is that we now close the contract negotiations, how long will that take? one-three months depending on how much gets haggled over. So what does that mean for cash? It means the cash burn continues. How substantial is the contract? around £20k a month, what is the cash burn? around £1-200k. When will we see our first cash from this announcement? sometime towards the end of q1 if we are lucky. So we talk about breakeven, what does that mean? Cash generative? or an ebitda breakeven? probably the latter. So what is the purpose of the announcement? It is in my opinion to drive the price up in the retail area so that they can get a rights issue away. The cash issue has not gone away. They will be in the market soon for cash. Before you start talking about the debt facility you should understand how these work, you can draw on them, but.....there are covenants around coverage which it is pretty obvious that this lot are not meeting. No Commercial bank manager is going to allow his debt facility to be used as a bridge to hoped for future sales.

Then we have the PoC talk...werent we told that the product had been developed and was market ready? Small companies like this cannot afford to compete heavily for contracts of this size, its an arms race which eats cash. The implication is that they have burnt a lot in this win. Is it a pyrhic victory with dead cash lying all around?

Then there is the cleaning of the stable by the now permanent CEO, what does that mean?
Its whats not said here that is important.

Still very much one for the brave.