Ann: Half Year Report and Accounts , page-9

How on earth do these guys forecast revenue!!!

I'm looking back at the 2012 annual report. In this document the board and management forecast revenue of $52-$55m with an EBITDA of $7-9m for the FY 13 financial year.

They then detail the results for the first two months of the financial year as follows:

Revenue: $6.3m
EBITDA: $1.9m
NPBT: $1.3m

Now grossing the revenue figure up for 12 months gives you $37.8m. This is obviously well short of the $52-55m projected in the previous paragraph.

Then you look at the most up to date results we have for the FY 13 year - the revenue result just reported for the 6 months ended 31 December 2012. Revenue recorded amounts to $18.4m. Surprise surprise, revenue is pretty much in line with the revenue run rate recorded for the first two months of the FY 13 financial year ($6.3m x 3 = $18.9m, compared to actual of $18.4m).

Looking further back the prospect stated that the projected FY 12 revenue to be $58.4m. This legal documented stated that this revenue figure was supported by forward orders and that 80% was under contract.

The math, $58.4m x 80% = $46m CONTRACTED revenue. Turning to the actual result for FY 12, DTQ delivered revenue of $37m. What happened to the other $9m contracted revenue, plus any revenue signed up during the FY 12 financial year?