Eliot Penn's questions to INTERMAP TECHNOLOGIES (ITMSF) leadership • Q1 2016
Question
Eliot Penn of Lazarus Management requested more detail on the financial aspects of the pending SDI project, asking about the expected profit margins, the level of new investment required in CapEx and hiring, and the potential for additional revenue from customization services.
Answer
CEO Todd Oseth stated that while a specific number is difficult to provide, historical acquisition margins are in the 60-plus percent range and software margins are in the high 90s. He noted that any required increase in staffing would be funded by the SDI contract itself. CFO Rich Mohr added that CapEx would be needed for IT infrastructure and aircraft upgrades to increase throughput. Regarding customization, Oseth explained that it could become 'quite material,' with individual 'intelligent queries' ranging from $500,000 to $5 million each.