Ann: Nexcode cash receipts increase cash position, page-5

re: Ann: Nexcode cash receipts increase cash ... Exellent news on a number of counts ...

First, and probably least important, we see that ETC has $10M in its coffers. This sort of loot in the kitty is comfort to wary investors in the current financial stress.

Second, ETC have effectively told us that the revenue from their recently announced security contracts is starting to flow - i.e. those contracts and dollars are REAL and are delivering.

Third, ETC has yet again re-iterated its $48M profit guidance for FY09. And given there are only a couple of weeks left in that FY, ETC would have to have a damned good idea of by now about what their final revenue and profit figures will look like.

I would imagine that this mornings announcement will send a clear signal to the market that ETC really is delivering on its enormous potential, and a re-rating of the company is warranted.

The announcement should also increase the market's perception of the chance of ETC's likely success in nailing additional contracts with the governments that have already signed with ETC for their security solutions.

I would expect that this announcement will also see those broker who have previously reported on ETC (e.g ABN AMRO Morgans) to update their reports to reflect the derisking of ETC's prospects for commercial success.