![]() Launched in February 2015 with four trial orders received and four further partnership deals reached with companies in beverage (Diageo and Ferngrove), packaging (Constantia and Jones Packaging), labelling (SmartSign), injectables (Ypsomed), IT consultants (Tata Consulting) and retail consultants (Arc, part of Leo Burnett). Our forecasts for 20 are for improving revenues and margins, with the company achieving a net profit in 2018. We have reduced our 2016 revenue forecast by 8%, primarily based on our assumption of sales of hand-held ASICs, which read memory labels to be produced by Xerox, but with little impact on earnings as they are sourced externally and resold at very thin margins. We see the key concerns for investors as the risks surrounding transformation to R2R production and the likelihood of further equity financing being required in 2017 to fund the final quarters of cash burn and capacity expansion before the company becomes self-financing. The expected move to R2R production in 2017 should cater for this growth and result in reduced unit production costs. We expect these partnerships to translate into major volume order inflows from the second half of this year, resulting in a strong uplift to revenue in 20 and a positive impact on investor sentiment. Over the last six months, Thinfilm has doubled the number of high-potential partnerships and/or pilot orders for its products, in particular NFC OpenSense. Financials: Strong order inflows set to drive revenues in 2017
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