Rifici, the loss was virtually all write downs. They wrote the R&D of the robot applicator down to zero, they wrote a large chunk of the R&D from Datatrace off and also the lazer applicator. Basically they threw the kitchen sink at the value of their intellectual property which means they will get a substantial tax benefit come the end of the financial year. The cash loss was approx $500k.
Cash on hand $1.7 mill (but $1 mill of that is being held by the South African division as a dispute is taking place). If the dispute is resolved that $1 million will be released to DDT.
So if they can resolve the issues with the South Africans & get through to the end of the financial year their cash on hand may prevent need for an imminent capital raising. I rang the company last night to make sure that my summation of the above was correct and it was confirmed.
Quite sensible in this climate to do the write downs, most company's are doing it, i think by year end the write downs on the R&D and intellectual property could be worth a $2 million tax rebate.
DDT Price at posting:
1.9¢ Sentiment: None Disclosure: Held
