Headline (and its a doozy): GUESTLOGIX LAUNCHES FIRST FULLY-INTEGRATED MOBILE POS WITH PIN PAD AND PRINTER FOR AIRLINES; NEW DEVICE FEATURES MOST COMPREHENSIVE PAYMENT AND SECURITY INDUSTRY CERTIFICATIONS, INCLUDING PCI PED 2.0 AND PA-DSS
This device upgrade is targeted at European carriers, which all require industry certifications. Investors could expect to see announcements of new significant European carriers relatively soon - possibly before the end of calendar 2009. If you are an investor that considers the addition of new carriers like KLM/Air France, Luftansa, or Britith Airways to be meaningful, then today's announcement may telegraph these opportunities.
Some investors may have some lingering doubt as to whether GXI has the potential to manage all potential retail transactions on a flight including those done with mobile devices.
"The unit sports a large touch-screen interface for quick and easy use, and it supports a full spectrum of wireless communication technology, including Tri-band GSM/GPRS, WLAN 802.11 b/g and Bluetooth, to interface with other devices and services on-board."
Based on the above statement in the press release, I think that the communications support listed above should make the system extensible enough to potentially manage multiple commercial transaction on a flight including content downloads to consumer devices as well as onboard entertainment systems.
The Company has either deployed to, or has in its backlog over 700 million passenger trips worldwide. At between $0.036 and $0.04 in revenue per passenger trip, the Company has a potential aggregate revenue stream opportunity of between $25 million and $28 million in annualized sales. I estimate that, realistically, the Company could deploy 600 million by the end of Q1, which would put the Company on a 2009 run rate of approximately $21 million in sales. This could represent a double over 2008 sales (all organic growth) and the Company could be cashflow positive when it reports Q4 2008 results, which should be sustained during 2009.
Guestlogix is a Company to watch. There may be deployment bumps along the way, but the trajectory is impressive, especially in current markets. Based on its previous Q3 results, it had about $6 million in cash and short-term investments.
I do not own GXI shares, nor do I receive compensation from the Company, its Board, or Management.