The Directors of Paragon Care (ASX:PGC) advise that the Company experienced an operating cash flow deficit of $786K in the March 2013 quarter in line with the usual variation in working capital management for this quarter due to the January shut-down and Easter. Further, there was a managed build-up in inventory during the quarter to support an expected $4 million of committed revenue during the June 2013 quarter.
That is sounds all very well until you compare the revenue in the corresponding quarter a year back. In the Quarter Ended 31/3/2013 revenue was $2,555m. In the quarter ended 31/3/2012 revenue was $3,738m. That's a fair sort of a drop.
Then if you compare the cash burn it isn't so pretty either.
Perhaps its just a timing thing or is there a better answer?
PGC Price at posting:
30.0¢ Sentiment: None Disclosure: Not Held
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