Originally posted by Michaeljob
Even with $19.5m added to the contracted revenue (over 10 years) it seems unlikely that DTI can dig themselves out of the hole without a CR.
2016 MC was $37m with $16.2m revenue
2017 MC was $21m with $15.9 revenue with a negative NPAT of $5.9m
2018 MC was $13m with $19.1 revenue with a negative NPAT of $11.4m
Add on the $1.9m of new revenue and assume they lose none of the old and you get around $21m expected for 2019, apply the average net profit margin over 3 years (-22%) and you could assume that the NPAT would be around negative $4.62m which is about equal to the companies cash balance. So the question may be when is a CR coming? With the restructure of the board it seems some may not want to go down with the ship?
The loss per share last FY was 4.8c, a further loss of this quantity looks like it will see lights out.
Growing revenue to date has led to a larger loss, can anyone see way this latest increase in revenue will not add to the loss?
Michael,
A fairly simplistic analysis. I certainly tire of the word "underlying" (note, they never say overlying) when management try to make a silk purse from a pig's ear.
However, in fairness I quote what they said about the interim results to Dec 2017:- "The underlying EBITDA loss in 1H FY18 is primarily attributable toi) Below budget revenue due to project rescheduling - $4.0 million;ii) Ongoing unplanned project and product development work undertaken to meet client requirementsas well as to ensure enhanced product competitiveness.iii) Reduced product margins (as reported at 30 June 2017) associated with below economic productionquantities due to offtake delays;iv) Adjustment made to R&D Grant receivable - $0.4 million;"
In addition in the figures to June 2018, they quite rightly wrote off the Intangible Assets of $5.16 million, thus a major contributor to the over all loss for the year.
Back at the end of July 2017 they suggested FY18 looks like it maybe much better due to work in pipeline is now $30 mill. Sadly they achieved $19 mill in sales for the year.
I am hoping that after all the write offs that perhaps they may now get their act together and sell existing technology rather than encourage their potential clients with new technology around the corner and thus have to write off so much of the existing. Technology coys like technology, new technology. Whereas I am about selling todays, make money and quietly develop better products on the side while generating increasing profits. ELX is similar in frustrating longtime shareholders. After awhile we tend to think Bitcoin, lithium, blockchain, cobalt maybe better alternatives for our hard earnt cash. JMT
Exasparantingly yours Rikardo
