like I said, from the perspective of this quarter the main focus has been costs, they have been working the last 6 months on workforce reductions and other efficiencies and we are now seeing that take effect in the cash outflows. from longer term perspective these actions will have a lasting effect and equate to a $10m or so positive impact on returns per year.
arguably, this is probably more important than a $4-5 mill effect on cash balance within one quarter, if we look at the bigger picture.
from a revenue perspective i think it's fairly obvious they didn't make a big push on the sales front this quarter as they have been focused on costs (hard to do both at once, increase in sales while also restructuring) but also probably as they are aware this is their weakest quarter seasonally and not the most cost effective quarter for custom acquisitions.
other thing to note is that it's very difficult to read into performance of a company from their quarterly cash flows statement, even more specifically in relation to E88 given their operating model and mismatch in customer and supplier payment terms. the main value such a report provides is to see the status of cash position which we all know based on recent raising is healthy, and so hence implies no raisings will be needed at lesser prices than current mkcap, this is usually when you'll see a market sell off purely based on a quarterly statement....
i suspect that the next quarter will make for a better barometer in comparison to PCP if you're looking for an indication of performance on the sales front from the quarterly..... and I say sales only given the supplier payments are often skewed!
