Ann: Company Update, page-27

Excellent point Shareholder.

My concern is TEMS.

I was not satisfied with the explanation that they are now investing funds in research and development to "make it right"
At this point it seems like a slowly sinking ship.
One can only assume the concerning revenue decline is due to customers not wanting to use the technology.
TEMS is not new.
If there were issues arising, surely the customers were raising their concerns and if so , why wasn't something done before the substantial decline in revenue.
Are there alternative technologies that have surpassed what TEMS has to offer.

The company needs to be completely transparent on this issue. It has recently gone thru a reconstruction phase and investors expected all the deadwood to be eliminated and the regrowth of the company to begin.

Now we have another unsolved issue. TEMS.  I do not accept that a strategy to minimise TEMS churn and capitalise on related expense management opportunities is the healthy. That to me is an accountants attitude to survival. In 9 months the TEMS revenue has decreased by 34% - there is something seriously wrong.

You can adopt all the sophisticated accounting procedures possible but if you do not have revenue they are as useless as tits on a bull.

If a product or service is not being purchased by the end user - the end user has found a better alternative.

If TEMS is falling into this category, they need to take the knife to it.  Alternatively the ERP division will be dragged down by TEMS and the company will once again wallow for more years in the .01 cent range.

It is very easy to destabilise a company with the pursuit of a division that has issues.

This management now needs to make correct commercial decisions which should be focusing on revenue growth which means an overall MARKETING CULTURE not a single phased accounting focus.

The Chairmans skills are auditing and assurance services
The non executive director is a commercial lawyer
The Chief  executive seems to have a background in technology industries.

As an investor in the company, I will watch with analytical interest as to how these gentlemen set the company business plan moving forward.

Will it now be ride the back of ERP cloud computing, which is highly successful and poor funds into TEMS  as an accounting exercise leaving the company bereft of any meaningful growth.

If TEMS is leaking revenue that badly in 9 months, then there is something seriously wrong with the technology. How long will it take to fix, at what cost and how much it will derail the focus on the ERP snowballing cloud business.

TEMS is a major distraction and it needs transparency in terms of communicating to the market and current shareholders as to what is really going on.