The pilot wasn't with Digicel, it was with a two digicel customers who had committed verbally to sign up, however, with the CEO dying at digicel they elected to wait and see what transpires before they enter into a 3 year contract. That makes a lot of business sense. Both those customers remain "live" and new resellers are being added in the region. Its not too much a stretch to think they will pick up where digicel left off. Hopefully this quarter.
The drop in revenue was mostly due to the time taken to sign the new Airstream deal. That has been done. Also the great majority of the December OHM sales where done in the last 3 weeks and that revenue falls in the march quarterly. So by default, March could be up 120%--150% on this result as Airstream contributes $450kAud, Base OHM number must be around $450k, plus the last three week sales and then add to that what they do this quarter. No one said the road to profitability would be a straight line.
Anyway, today is about the acquisition. Lets see what unfolds there. People will be negative and bitter if they are losing money and pre maturing calling for heads to roll. There is no question that a strengthening of the board is warranted but DM is well deserving of another 12 months as CEO to get to where he said he would be.
BUD Price at posting:
9.5¢ Sentiment: Buy Disclosure: Held
