I am not worried about the $1.5m cash flow. We saw the same thing happen in 3rd Q 08 and we all rightly concluded that it was a timing thing; they have to incur high expenses up-front for a project and receipts relating to that expenditure follows later on. Same thing is happening here. Also they have another $13.5 m that they have not received in payments from customers yet (if I am correct that is the difference between revenue and cash receipts). This will be booked next quarter.
I too am focussed on the growth here and Lange's comments around the ST future i.e. no slowdown in projects that they are bidding for.
Overall a great result in this environment, let's hope the rest of the market recognises it as such
NMS Price at posting:
11.8¢ Sentiment: LT Buy Disclosure: Held
