Wolf, all:

Based on RG's responses to the PDSG healthcare market during the conference call, it appears that this market will likely lag the public safety market. It has potential, but the CDX solution is not an EMR software tool, rather one that allows records already digitized to then be shared among disparate data systems. Even the goals of the Obama Administration put the full digitization of records at approximately 2015, based on reports I have read. RG stated 6-9 months for revenues to "materially come together" (which is very close to the time-line I have noted regarding my expectations on this matter), but I believe that will apply to the public safety and law enforcement markets, and the healthcare market will lag that time-line by as much as a year or more, picking up in the way of deployments and increasing through 2015 and beyond, if the EMR initiative is executed as we are lead to believe at this time.

Here is RG's comment from the CC on this (my underlining for emphasis):

Until that approximately 95% of non-electronic records have been converted to EMRs, our CDX solution will not have much to work with. I guess CDX deployments could be implemented in preparation for that time, but RG's statement alludes to the need for a larger percentage of records to be electronic before PDSG will be in a position to leverage their CDX solution.

His comment about PDSG's plan for partnering with - rather than directly competing against - companies that offer services to convert paper to electronic records (among other administrative and QC software services) seems a good one, especially since we have the broader standards-based secure data sharing part that these companies do not, and we are not an EMR conversion service provider (not yet?). I also found it interesting that PSDG's approach to securing contracts is primarily through partnering with systems integrators, and not directly as a prime contractor. DD on the companies that we could partner with for government contracts seems to be a focus shift, i.e., what larger companies are being awarded these relevant contracts? We may not know what companies we are partnered with until well after the award if the nature of the contract is "sensitive."

All in all, an informative look into the secure data sharing market from RG's and PDSG's perspective. I like the way he spoke with what came across as a very good understanding of our technology, the markets we are pursuing, and how they relate. I look forward to Baroni's assessment being delivered in a month or so (based again on RG's comments from the CC) and how that might play into our business plan.

Great news on the 336 so far; thanks to everyone that has been posting DD on this. And, it is good to see a higher share price, though I would like to see us at least in the .50s by year's end. That would almost make me whole on this investment!! LOL

Cheers,

DG