a positive spin on ann

This is how I read this ann.

As I understand it, Safenet had contracts in place with the US gov, etc....to sell SEN product & they are now stuffed because they don't have exclusive selling rights. In turn Vector has bought a dud.

Safenet now needs to re enter in an agreement with Senetas BUT........................instead of giving us 10% commission, Senetas can negotiate are far superior commission either with a new reseller or even with Safenet!!
This was an ann in Feb regarding Safenet


"SEN Issues Further Results Guidance as US distributor
confirms Royalty Payment for the half year 31 December 2006.
Senetas Corporation Limited (ASX: SEN), today announces that, based on information
presently available and based on royalty information provided to us today by our US
distributor, the half year result to 31 December 2006 is expected to be a loss of
approximately $2.0 million. The company previously expected a result range between
negative $1.5m and positive $400k.
The Royalty due to Senetas for Q2 is significantly lower than previously forecast."


It's very fair to say that Senetas hasn't been very happy with Safenet. Perhaps the T/O of Safenet by Vector took the focus off all things Senetas & now the shackles have been broken.

Senetas seems intent on having more direct sales channels to their customers.

Stay tuned for a turnaround IMO.

Just my positive spin on things.

What do you think??