I just posted this (My views) in response to a post in another...

I just posted this (My views) in response to a post in another thread about the Chairmans Address and the requirement to raise more cash :

Engin's strategic direction (Thanks to Seven) was a triple play solution based on its existing and mature VoIP platform, on TiVO which it has the rights to distribute in Australia and by selling Optus Naked DSL tails. They were burning a lot of cash bring on these new roll outs and at June 30th had 144 staff.

In the chairman's address he mentioned the Optus Naked DSL plans were on hold. This is confirmation of an earlier article from the AFR saying it had been scrapped. This article also mentioned they had let something like 30 staff go including Marketing chief Phil Dobbie who is on the books having earn't just over 100k last year. The Chairman did mentioned they have "undertaken a review to reduce cash burn".

As the Chairman has mentioned, the new direction is triple play with Unwired WiMax. Network ('Network Investment Holdings Pty Ltd') aka Channel 7 will know close of Business tomorrow if they have the 90% required to take over Unwired. Last week they were close at 86%. Channel 7 plan to pump $100s of million into Unwired to roll out WiMax to Australia as a distribution media for TiVo.

As Network will (looking optimistically) own Unwired, I doubt engin will need to burn much cash in this area. They will burn cash on TiVo, something Channel 7 is very interested in. (Who cares about VoIP.)

Engin has mentioned it needs to raise cash in Q1. Seven Digital Media (Investments) Pty Ltd already own 33% of Engin and Seven had no hesitation in taking over Unwired when WiMax fitted strategically into their plans. Why keep engin publically listed when they didn't bother with Unwired? Unwired was worth $132million, engin is just a drop in the ocean at $42million, plus they already own 33% of that. Even cheaper if you slash staff, announce a requirement for more funds and pretend they are in big trouble. They also need to pump a lot more cash into Unwired to roll out a national network to support TiVo, they they do into Engin to acquire the rights to distribute TiVo.