cool it everybody, page-28

Great announcement!
Management are aware of the market's anxieties and have moved to address them.

10m in cash is actually quite a good result when you consider the following:

-The Nexcode contracts commenced in the second half
-The Chinese Gas Tank printing only started 2 weeks ago
-These large contracts would have payment terms ranging from 60 days upward to potentially 120 days


So to have complete enough work to then invoice and receive funds before the year is out is pretty tidy work if you ask me.

I am guessing much of the 10m is from the Malaysian govt contract as they had some sort of upfront payment arrangement according to our mate on the forum.

Of course it would be great if they got more cash upfront or sooner, but it is entirely acceptable and understandable that on contracts with such significant values that the buyer has some time to make payment on an invoice.

In fact I would say it is a very short payment timeframe for invoices of many million for tech solutions.

I think the criticism of "recylcing" is unfounded. The company made a very relevant and justifiable announcement, albeit an exceptional one they don't intend to make a habit of with respect to invoices. IMO this is a very responsive attitude that should be applauded.

Isn't this what we want from management? Understand what the concerns are and address them?

I dont think it was unreasonable of them to reiterate the 48m NPAT guidance. 2 weeks out, that is a great statement of confidence. If they had left it out then I am sure many would have had great cause to question why they didn't reiterate it.

You can't win either way with some people.

This is a very good story unfolding.
-Great government support from Malaysia.
-BIG government security contracts (not awarded lightly)
-Increasing and recurring income
-Massive margins
-PE expansion together with profit growth (very powerful combination)
-Award winning technology
-Increasing momentum with rumoured deals in CHina, Vietnam and more to come in Malaysia, not to mention the business development going on in the other parts of the world.

Just take a look at their Business Update from a few months ago and then read the Annual Report. There is so much more in the pipeline that will dwarf the current contracts and revenues. Amazing isn't it?!

This company is getting the business done.