The IMOD contract was meant to be staggered and payed during FY20. However due to Covid this was pushed back to FY21. Therefore 2/3rds of the contract will be cash receipt this FY. So expect higher cash receipts in FY21 not inlcuding $8m in cash. This is not including potential for new data network pipeline deals with significant tier 1 clients around the globe. Margins are very high here.
The services division is what is driving AVA's revenue and cash which should offset FFT's lumpiness.
I do believe AVA Services may be divested this year and/or go through an acquisition to provide a focused leadership.
AVA Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
