Ann: Appendix 4C - Quarterly Report with commentary, page-109

It looks a shocker...no doubt....but i can't help feel that DM is making a bad situation worse by obfuscating some of the details.  Not just today, but over the last few quarterlies.  Perhaps he has no choice due to reasons of confidentiality, competitive (dis)advantage and commercial sensitivities etc etc....but the price this will exact on market sentiment is likely to be considerable.

The only way I can make the numbers 'work' in the sense of a narrative that holds water, is that Q4FY18 had Thor revenues of $500k and Ohm revenues of $261k.  Q1FY19 has Thor down to $350k due to mid quarter ending of old SoW and balance of $534k being Ohm revenue.  Q2FY19 would have close to zero Thor revenue given that new SoW started in Dec, they went into holiday mode and outlined a "a fullroadmap of work for 2019". So the Ohm revenues could be $569k.  A modest increase of $35k revenue supposedly due to the festive season and the two big verbal commitments not converting yet.

Plausible.  But as yet unsubstantiated by company data. Only defense is logic that a reversal of Ohm numbers is not plausible unless advised by the company due to its obvious materiality.

Which means that with a 'full Q' of Thor under the new SoW ..the total $569k revenue could be $985k and if holiday seasons abolished, then potentially a bit more in Ohm revenue.  So, with all due deference to the "woulda, coulda, shoulda but didn't" reality.....more detail would be welcome in helping shareholders paint a truer picture.

Another thing.....I'm intrigued about the maintenance of calendar year-end BE.  Given the company commentary on the various channels, and in particular the time frames from Ingram Micro, it does seem implausible to me, without a) an earnings accretive acquisition; or b) a rapid and imminent conversion of some large tenders for Ohm; or c) a walking back of what break-even target is.  Maybe more than one of the above.

Point A is obvious and the rationale behind our continuing suspension, so lets wait and see.  Point B is increasingly critical with the march of time...but pipelines need to convert. Point C may require our expectations to be actively managed.  DM is already projecting operating expenses to continue declining by 10% per Q (as they have for the last 2 Q's). If BE means covering operating expenses only, then Q4 of this calendar year, the revenue target to achieve this may be around $2.8m for the Q.  Would calling "mission accomplished" at that stage (wrt BE guidance) be deemed acceptable to the sceptics.  Does DM still have the goodwill to see that through.

Time will tell.  I'm hanging around(on) to see how this goes.

Tough gig.  Running a speculative small cap tech play on the ASX.