Thus Share Discussion Threads

[sweepie2] 22/4/2018 09:40

Blockbuster report from Investor Show about Tern, market sensitive news leaked to attendees

Further to yesterday’s brief post, I had the pleasure of sitting through the TERN presentation by Bruch Leith and the chance to talk to him in detail for about 15 minutes after. Bruce came across as a nice guy and indeed, he explained some of the personal issues that Al Sisto has had to deal with in the last 3 years and it puts things in perspective.

Presentation

Key points:

- Al Sisto; career in Intel; encryption expert with expert knowledge of what’s needed in the IOT space.
- Al Sisto California based but spends approx. 50% of his time in the UK.
- Tern; the leading investment company in the IOT space.
- Bruce Leith; primary role; finding new deals/investment companies (note; at last, people now in dedicated roles rather than trying to do everything).
- Bruce; looking at 4 new investment companies , deals imminent , subject to term sheets and due diligence completion.
- Working with Microsoft (possibly through In VMA).
- Device Authority : hungry for cash due to growth; building product and distribution channels with Global technology companies
- Intel deal; took 2 years to consumate; 7 months behind schedule mainly due to Intel internal process/sign offs. DA will handle authentication of Intel chip and through the Cloud
- GEC; launched in USA last week (medical devices); launch re-scheduled to enable DA integration to be integral to the product. Enables 24/7 monitoring and treatment remote from hospital of patient condition but all data secured by DA. Huge market potential.
- Strong play – authenticating sensors and at point of application; data remains secure throughout.
- Products are now being rolled out; very well placed! Data analytics will also be a revenue growth area.
- IOT take up by global tech has been slower than envisaged but now starting to gain traction and momentum.
- 8 fold increase in security attacks in the last year; DA has a hack proof platform that automates at scale.
- Strong patent suite that global’s cannot copy
- DA life cycle has seen 12-24 month sales campaign followed by a 9-12 month product development/integration period. THIS IS WHY IT HAS TAKEN TIME TO REACH PARTNERSHIP AGREEMENT AND PRODUCT ROLL OUT. Global tech companies are slow to progress due to internal approvals, budgets and priorities.
- Now in a position to deploy Keyscaler globally with good evidence of several major customer contracts signed in the last 6 months.
- THALES/GEMALTO; TO BUILD A BUSINESS AROUND DA/KEYSCLER; 2018-2021 RAPID GROWTH ENVISAGED
- PTC; a $6 billion company with DA intrinsically linked!
- Verticals/markets huge; sensors/data transmission now permeating every aspect of global world/life.
- Emphasised high profile global partners.
- THALES; LOOKING AT HUGE USA DEAL WITH ROBOTICS DELIVERING SURGICAL PROCEDURES – DA WILL BE INTEGRAL TO SECURITY.
- AMAZING THINGS TO COME……
In VMA

- Phenomenal order book; tripled revenue in 3 years to £1million and no signs of slowing
- Key contracts with Howdens, MSE, MEM’s , GEC
- Asset Minder can now be deployed within 3 months of enquiry; see huge potential and synergies with DA.
Wrap up
- Focus on improving investor communications via 3 monthly conference calls
- PATENTS ARE EVRYTHING! THIS IS WHY COMPETITION IS STIFLED, DA ARE IN THE BOX SEAT AND GLOBALS GO TO DA FOR THE SOLUTION TO THEIR SECRUITY ISSUES
- SaaS model ; recurring and growing revenues
- BLENDING OF THE TERN COMPANIES TO PROVIDE INTEGRATED DISRUPTIVE SOLUTIONS THAT GLOBAL PLAYERS NEED!



Conversation with Bruce Leith

Bruce came across as a genuine and nice guy. It was clear the last 2-3 years has hurt the BOD as much as shareholders. For example, a number of Bruce’s family have shares in ISA’s bought at 14,12, 10, and 8 pence. It is clear the single issue that has stymied progress has been the time it takes to consummate a deal (typically 12-18 months) and then integrate Keyscaler into the eco system offer.

This is due to global tech companies themselves struggling to shape their offer to the market and the way these companies deal with their supply chain in terms of budgets, approvals, gateways etc. Essentially, think of a timescale and double it. Intel took 18-24 months but things are moving rapidly; Keyscaler will be ‘on chip’ and in the cloud for the Intel solution.

In summary, they are 12 months behind where they thought they’d be. The US fund raise is still open but didn’t take off due to the slow uptake of contracts + a poor understanding of what is being developed.

Device Authority are talking with Microsoft and ARM (DA were approached); global’s will use DA rather than spend years developing in house; ALL ABOUT TIMING!

Last week’s San Francisco conference went well with significant interest shown in DA.

There is significant interest in DA and ‘players are circling’. They’ve already had offers that have been rejected (at above the current TERN market cap).
The dilemma is the timing of sale of DA versus timing of value created by the global partnerships versus the cost of funding a growing company. Also, in order to attract institutional investors to TERN, they need to prove the business model by selling a company for a significant return. Whilst Bruce wouldn’t be directly drawn, my impression was a £75-100million offer (short term) will be considered. Bruce so stated a realistic aspiration that TERN will be valued at £100 million within 12 months.

I left the event feeling extremely positive that our money is in safe hands and the share price will be multiples of what it is today in the coming months. My personal preference/issue is they find a way to keep DA for another 2 years unless a £250 million offer is tabled as there’s no reason why DA shouldn’t be valued at £1 billion + within 3 years. Ultimately, I cannot find a reason to sell my shares anywhere below £1.

Hope this helps but DYOR,NAI.

[gonzo123] 21/4/2018 14:11

Afternoon all,Pints of gutwrenchers all round with a Scottish falling down water with a dash of dehydrated watered down water chaser , slap it on river's tab

[ignoble] 21/4/2018 11:25

Good News

JJ , it is perhaps not that everyone is
so young these days , rather that we
are getting older

[ignoble] 21/4/2018 08:31

Blimey. ..
Hope they can sort it this morning

[jonjonck] 21/4/2018 08:26

Good Morning.
Going back in to see Louise this morning (Mary not in) - not gone well at all although this morning I appear to be a lot better and swelling in mouth has gone down a lot.
Neck is all swollen now.

[ignoble] 21/4/2018 05:43

2.30 ?
Need to go back to see you know who

Morning good chaps

[jonjonck] 21/4/2018 02:30

I'll have two fingers please of falling down water.

[ignoble] 20/4/2018 22:30

I think drinks all round and on Mr and Mrs FFP's Tab !
Sod it , I'll pay

[ffp] 20/4/2018 22:26

Yep, thanks, we both thought was all ok, but when the consultant signs the paper, just makes the difference... All round been a good day. Thanks all for your good wishes...

[jonjonck] 20/4/2018 22:05

Agree, best news indeed. Not much I can add so wot ig said is what I say as well.

[gateside] 20/4/2018 22:05

FFP.... What lovely news. Thanks for sharing.

[ignoble] 20/4/2018 21:39

Mrs Ig sends her very best too
Thinks it is wonderful news

[ignoble] 20/4/2018 21:37

Just the best news ever !
Absolutely wonderful , please send my very best wishes to Mrs FFP.

Brilliant for you both !

[ffp] 20/4/2018 19:04

Evening all... Take kids out, we are retired they are on a good wack and I pay... Summit aint rite///

Good day, we are sort of celebrating, The Mac got signed off from Guys hospital today with the comment you are now completely free and have no more fears that it will return. So we had a good lunch in Bouragh market

[ignoble] 20/4/2018 17:48

Watch this space !

[gateside] 20/4/2018 17:21

Love it!They take you out to dinner, but you pay!Stand your ground Ig.

[ignoble] 20/4/2018 16:26

Tonight, I am being wined and dined by
the delightful Mrs Ig and our son.
A local restaurant from what I understand.
I will also lay money that somehow or other, I will end up paying.

Stand up for yourself ....Mrs Ig doesn't bite...
(That often)

[gateside] 20/4/2018 16:18

What's on the menu tonight?

[jonjonck] 20/4/2018 15:35

Afternoon chaps.

[ignoble] 20/4/2018 09:00

Morning Chaps
All a bit hazy this morning.
Should be very warm later , again

[jonjonck] 19/4/2018 17:09

Got antibiotics to get rid of infection below tooth. Tooth may have to come out as previously root treated and crowned a long time ago.

[ignoble] 19/4/2018 16:41

Phew
28 degrees although the Toymota says 31 degrees
Mrs Ig thinks it too hot

Moaning for 4 months about the cold , first day of heat and off we go again
Gawd