While the change in accounting treatment will impact Software division profit, it worth bearing in mind the following:
The basis of sale will be higher, so rather that $23.7m, the valuewould likely to be higher. I don't expect 1 new rental model, but customised arrangements for each sale, with penalties for early withdrawal. The initial take-up will probably be small, although increasing in latter years.
There was $17.5m in maintenance revenue, which will continue , but a proportion build into the new rental model.
There was $9.0m in consulting, which will continue and increase as suggested by RUL.
RUL Price at posting:
73.5¢ Sentiment: Buy Disclosure: Held
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