Ann: Appendix 3B-NOR.AX, page-76

Its all about margin (or lack of) and I get the feeling some are looking at a $1m, $2m or $3m contract as some kind of financial game changer. Likely it will just be a slight support for the next capital raise is my guess.

If the cost savings of CORONA are 25-50% or whatever their claim is now, consider an example.

Brents Massage Parlour doubles as an outbound telephone horroscope service. He pays big-telco co $2m per annum .. with that telco making say 40% margin =$800k profit and spending $1.2m to supply the service (COGS + overheads).

NOR comes in and says, we will save brent the lower end.. 25% so they charge him $1.5m

Without the benefits of scale that large telco's have, NOR now need to provide the service and hopefully make a profit. They have to somehow spend less than the big telco and make a profit.. if they can procure services at the same prices as the big guys - they would spend $1.2m, so left with a potential $300k profit. If the savings are bigger, the margins potentially shrink further.

Not big biccies really. Even scaled out, you are going to need to see loads of contracts to see material revenue. Obviously we dont know the margins and maybe these are way off. But looking at the figures we do know, WorldPhone appears to cost more to service than the revenue it brings in (even excluding marketing) so at what point will CORONA v2 or v3 be profitable and help support the companies cash-flow position?