Small Cap Network Blog

Maybe you saw this morning’s letter from Voyant International’s (VOYT) CEO Dana Waldman? If you didn’t, I don’t know that you missed a whole lot - it was a brief update on some of the current projects….white space radio, RocketStream, and Aviation Broadband. There was one new item that came up though.

Remember the name ‘RocketConnect’ - I suspect we’ll be hearing it more in the near future. As near as I can tell, RocketConnect is RocketStream for consumers. RocketStream was targeting businesses and organizations with massive data transfer needs. RocketConnect is targeting end users - ordinary people at their desktops and laptops - to accelerate the speed at which they send and receive information over the web.

I couldn’t perfectly tell, but it appears as if this product is going to be piggy-backed somehow with Internet services already being provided to consumers. Maybe there’s some sort of revenue sharing arrangement being forged with ISPs. The reason I say that is simply because Waldman said to think about the potential sales volume on the same scale as cable/telco volume.

It’ll be interesting to see what it is and how it plays out.

Everything else in the letter was fairly predictable.

By the way, did everybody see Voyant’s most recent 10Q? It quietly came out Monday, and was essentially what we were looking for… a little more revenue, but nothing life-changing. They pulled in $177K. For comparison, they did $133K last quarter. So, the increases are coming. (Any increase last quarter is impressive.)

What’s been fascinating for the last two quarters now is the massive gross margins we’re seeing. Their cost of sales was $30K last quarter, and only $13.3K this quarter. That’s a gross margin of more than 90% … which is why software is such an attractive business to be in. I think margins will head lower as the other business ventures ramp up. But still, that’s impressive. RocketConnect will be the same way - once developed, it costs nothing to share it, yet it still bears revenue.

The stock is perking up today, but I don’t think the letter is the reason.

Did you know there are some thoughts and comments that only appear in the e-mail version of our newsletter? That’s right - if you’re just reading the blog or the online version of the newsletter, you’re not getting everything. Be sure to sign up for it today.