at last, page-13

Management losing credibility. That's twice they've said projects being delayed is the reason for missing guidance - they said the same thing at the half year report, and yet reaffirmed the 6-7cps earnings guidance for FY08.

They were still forecasting FY08 revenue of $85m as recently as last week, when they put out an investor presentation. $85m revenue was also the figure they used to justify 6-7c FY08 EPS in the capital raising announcement in December last year. People were entitled to believe after they reaffirmed their revenue targets only a week ago that they would be on track with their profit targets too. That's clearly now not the case. Either their margins have magically shrunk overnight, or the $85m FY08 revenue forecast, reaffirmed only last week, is also now wrong.

This company either needs to take a more conservative approach to its forecasting, or stop issuing forecasts at all if they're constantly going to disappoint on the downside. I'd suggest that if the timing of their revenues are constantly at the whim of third parties, they should think about the latter.