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27/10/18

12:41

Post #: 36283863
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Originally posted by edshann ↑

Struggling with these numbers. Revenue last year was $7.3 million. Order book TARGET this year is stated at $10.5 to $15.8 million and a footnote says this is converted to revenue at 70% to 75%. What this means in terms of revenue this year is unclear, but possibly revenue could double this year at a guess. The key for the future is probably what the Origin deal produces in terms of ongoing revenue which is still unclear.

The sales order book was $10 million at the end of FY 18 and there were $2.2 million in new orders in the first quarter. However, I am confused as to whether the order book target of $10.5 million to $15.8 million is new orders or incorporates old orders as well. I assume probably hoped for new orders of which 25% do not convert to revenue.

There is $1 million in cash at the end of the quarter and an outflow this quarter expected of $2.6 million, not allowing for any revenue which was only $1 million in the first quarter. We might last another quarter if revenue is $2 million plus (new orders last quarter were $2.2 million) and a R and D rebate of unknown size is received (were $625000 in each of last years), but we will then need either more borrowing or a cash raise.

We need a clearer statement of expected revenue this year and the current (actual) order book. The current information provided is not clear enough.

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Totally agree. I think this company ticks all the right fundamentals boxes and they have an extremely good value proposition with their various proprietary technologies.

However, marketing and communication need serious improvement so that the share price can actually get the appreciation it deserves. Until they fix that, the risk of dilution remains high.

VIV Price at posting: 3.5¢ Sentiment: None Disclosure: Not Held
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Ann: Market Update, page-6

Top Stories

Sales growth pushes Lovisa's fortunes (and shares) upwards

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Scientific conference spotlights PYC's work on blindness disease treatment

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects