In no particular order. Going thru some old reports and presos I note what may be relevant. I've been in and out as an investor about 3 times since listing, and a couple of short trades to boot. Currently in.
The Nasdaq peaked in mid March 2000. CMP listed 9 months later when markets was in decline. Nevertheless CMP listed 140m shares @50c for MC of $70m and rev about $15m. If memory serves me the SP reached about $1 before falling. If so MC was close to 10*rev.
Currently, 167m shares. SP= 30c. MC is $50m (recent low of $15m) on revs of about $30m. This is very low compared to the 6 other companies shown in March '14 preso. So I wonder if the other companies shown are newer companies, that have not yet gone thru' the trials and tribulations CMP endured, which, amongst other things was the high A$. (Others may know more of this competition).
Pg 14 of the 2013 AGM preso states that "relocation of some manufacturing, component purchasing and some labour intensive activities, have or are in the process of moving to Asia. This is ongoing.' Margins incr. from 49.55, to 50.9% between 2012 1nd 2013. 2014 margins were 52.8%. CMP states manuf.costs to drop by between, 33 and 50%.
This doesn't appear to be borne by pricing of margins. Three possible explanations I can think of. Uptake is going slower than I expect, or discounts are passed on to customers by discounted sale prices. Or a combination of both. This year's annual report may give us better picture.
FX. It's hard (for me) to fathom whether overseas contracts are priced are in A$s and sold at then converted price, or contracted in say, USs and then converted back. It appears the latter, at times, but other figures don't add up. A 2013 report states every 5% fall of A$ means an extra $161k NPAT to CMP. Anyway, the A$ av just under US89c in Dec 1/2 this year. So far this half A$ is av. is just under US78.5c. How much are contract prices discounted to keep up with Aust competition, if any as a result, is unknown to me.
As a rule CMP have been overpromising the results of late. The latest 1/2 yrly forecast has dropped revs, and profits from six months earlier ones. They have rev of $33m, EBITDA $4-5m, NPAT $1.8-2m. That compares to actuals of $30.8, $3m and $.9m resp. for 2014yr.
CMP have the sales, reputation and contacts to make a good fist of ehealth/cloud. Whilst my tech knowledge is limited, I believe this is where the big profits will come from for CMP.
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