Ann: Appendix 4C - quarterly, page-64

I was considering buying into ISX but i really don't like the way management pulled all the levers just to achieve the tranche 3 performance hurdle.... A good example is the paragraph below. Would they have done these "one off revenues" if it wasn't for the way the hurdle was structured?

"Additional one off revenues to new merchants enabling direct connection to our core services. These revenues are at low margin and have a direct correlation with an increase in cost of goods sold but they will enable long term, consistent revenues via our core services and creates a stickier relationship with the merchant."

I'm not as close to this company as others but has their cash flow from operations/revenue ratio always this low? The fact revenue came in so much higher than cash flow makes sense when you consider the hurdle...