The 4C is an excellent basic indicator of how financials and in...

The 4C is an excellent basic indicator of how financials and in particular cashflow are travelling. Of course it does not reveal the full story but based on previous information from MNF there appears to be no reason to be concerned about any significant changes in debt or operating expenses.

I think , if given the choice, the majority of ASX listed company shareholders would welcome the basic 4C quarterly updates on the companies they are invested in.

For your reference, this is the headline text from the last 4C report. This is very good update info for MNF shareholders.

28th October 2008

Appendix 4C for Quarter Ending September 2008

• Total receipts from customers $2.5 million for the quarter
• Net operating cash flow positive $90,000 for the quarter

My Net Fone Limited (ASX:MNF), Australia’s leading VoIP service provider, is pleased to announce it achieved a successful September quarter with receipts totaling $2.5 million and a positive net operating cash inflow of $90,000.

The results represent increases of 11.5% and 125% from the last quarter of 07/08 respectively as well as a 10% increase
of net cash reserve.

The results confirm the continuing strong growth from sign-ups and usage of the My NetFone services from residential and, increasingly, from enterprise business customers
across Australia.

Customers choose My Net Fone not just for the cost savings arising from the use of innovative, converged services, but also for the competitive edge they gain in terms of efficiency and productivity in running their businesses.
The company’s vision is to innovate and exploits new technologies to offer IP and web based services and applications that will benefit its customers. The Directors of the Company are comfortable with the cash position of the company and expect the growth to continue.


By way of comparison, Engin did not provide a 4C report so Engin share holders are flying blind. Of course due to the age of Engin, they are not legally required to do so.

Of course MNF's other peer competitor provided this for it's 4C report.


QUARTERLY CASH FLOW STATEMENT TO 30 SEPTEMBER 2008

Melbourne, Australia, Tuesday, 28th October 2008:
For the quarter ending 30 September 2008, Freshtel Holdings (ASX:FRE) reported that the total cash balances of the consolidated group were $6.6 million.

The net cash outflow recorded for the quarter was $1.6 million compared to $2.2 million for the preceding quarter.
Receipts from customers increased to $0.93 million, mainly due to licence fees received for the white label deal with PTCL, Pakistan’s largest telecommunications provider, which was signed in September. PTCL’s calling card solution has just been launched to customers, and is expected to have further impact on revenue in the forthcoming quarter.
“We have a number of initiatives under way including the PTCL launch, promotion of our products and new business opportunities which we expect to have an impact on customer
receipts in the coming quarter,” said Rhonda O’Donnell, CEO of Freshtel Holdings.

Payments to suppliers and employees were $3.0 million, a decrease of $0.1 million on the previous quarter. Despite the overall decline, there was a spike in employee costs which rose by $0.2 million to $1.9 million. These employee costs included $255,000 of termination and redundancy payments made to employees and a former director.

Administration and other costs were $0.9 million, representing a decrease of $0.3 million on the
previous quarter.

“As we have reported previously, we are transitioning from an R&D focus to a sales focus. This has meant that we have needed to reduce the resources devoted to development, which in turn has contributed to a decrease in employee related costs. We expect further declines in general
expenditure and employee related costs in the coming quarter, which should translate to further slowing of cash burn,” Ms O’Donnell said.


So, in summary, whilst 4C reports are nothing like 4D reports you would have to say that they are very useful & informative for shareholders. They also provide an excellent reference point to shareholders to judge predictions made by directors.