Ann: Half Yearly Report and Accounts, page-10

The increase in corporate deferred revenue is great, in fact it is better than deferred consumer revenue!

Don't think of it as being 'one-off', quite the opposite, it is payment by a distribution partner for a microchip. That partner is risking their capital and absolutely intends on distributing that microchip to an end customer in the near future, in order to get a return. The margin on the microchip sale is quite small and will almost certainly be accompanied by a data purchase, at the time of sale, or at some point in the future.

If you scan through the segment reporting you'll see that some of the distribution deals signed earlier in the HY seem to have flowed through as recognised revenue (Africa and some of Brazil/Bolivia are easy to distinguish).

I'd assume that the bulk of that $630k would be from the SipVoice (Brazil) deal. The initial order placed on 27 April was $400k AUD and only $100k of revenue was recognised for the HY in the whole of South America. The balance would mainly be from distribution partners in Asia. Earth Station & One Vasco deals weren't signed until August/Sep so, they would have had very little time to distribute their stock.

I believe accounting standards dictate their ability to recognise revenue, and I agree it does provide an excellent leading indicator of future revenue. On that note, customer deferred revenue has exploded, but corporate deferred revenue has actually decreased. This seemed a little strange to me, so I checked the previous years HY report and in that report it states SEP17 Corporate Deferred revenue as $114k not $548k as indicated in this report? Weird?

I believe that FRX may have been still wholesaling SIM cards in FY17, so this may go some way to explaining things. (Also, I note they kicked off their Partner 2.0 program in FY17, it started with a bang).