MoneytaxThanks for your comments.Yes, STAFF COSTS was a big...

Moneytax

Thanks for your comments.

Yes, STAFF COSTS was a big shock and should have been communicated in a MUCH better way.

In relation to add back deposits, I did this purely as a theoritical point of view. I imagine that deposits on orders placed are either requested from new clients or large orders (the company has stated material orders to be announced have to be in excess of $250,000), I can only recall one large order that being Telstra for which a deposit (pre-payment) MAY have been negotiated. Though not sure if that was in the June or September quarter.

In relation to sale commission, it all depends on the companies policy, for sales reps who are on base + comm I know of cases when the comm is paid monthly and quarterly, pure comm would have to be once the order is shipped, though again I now of cases when sales rep say gets 70% on shippment, then the other 30% when the customer pays the bill. Again depends on the companies policy.

We all require to be paid for services rendered, directors are no different. I do recall reading that the accrued liability in relation to directors fees was in excess of $189,000 it would great if the company could clarify the position of further accured liabilites to directors in any shareholder update. I agree, the directors fees, related parties expenses etc would have looked better if it was staggered over a couple of quarters. Hopefully this will be thought off a bit smarter in the future.

Re operating purchases, yes the figure is lower, though the company has communicated that they anticipate sales will be lower for the current quarter; not surprising given the current global turmoil. Perahps, they have made the decision to preserve cash and keep a tight rein on inventories. After all that is managements job on a day to day basis.

Clearly someone did not like the 4C and wanted out this morning with 3.3m volume going through this am and a new all time low of 0.005c

Cheers