Ann: Client Outlook Acquisition and Capital Raise Presentation, page-39

"It's not exactly a fair comparison"

I personally don't think it's the right comparison either. I bring it up because it was mentioned in an earlier post here (viz. PME at 45 x revenue versus M7T at 15 x revenue - it'd be more valuable to use EV rather than MC here) and has also been presented in company promos (eg. slide 28. http://www.mach7t.com/wp-content/uploads/2016/04/M7T-Gordon-Capital-Report-April-2016.pdf - interesting the comparison doesn't cover any meaningful valuation metrics and visage 7 ticks all those boxes!).


"Their losses are growing? They are basically cash flow positive now." - Hingdog

It's easy to massage cashflows and accounting profit in the shorter term, but over longer periods it's very difficult to hide.
Take Q1 and Q2 FY20 for example, Q1 generated $1.652m in OCF and Q2 generated $560k in OCF. But when we look at the Receivables and Payables balance in the HY report, there has been -(negative)$1.234m movement. And unsurprisingly to unwind, Q3 shows a -(negative)$1.255m OCF. What could be the motive of such accounting tricks?


"80% of your M7T figure is from the current CR, which is for growth purposes to scale the business. Mute point." - Carpe diem.

Actually I didn't include the current CR. I've rechecked the balance sheets, the exact figure is $63,582,535.


"You honestly think Mach7 have grown revenue by 30% in 5yrs?" - Carpe Diem.

My bad, it's closer to 50% from FY15 to FY19. Post FY17 writedown, the CGU's are now tested at 24% annualised revenue growth.

Jaywin... if I remember correctly, at the time of acquisition in 08/09. Neither arm of Visage imaging (amira being the R&D arm) was ever profitable, they were bleeding cash at the height of the GFC. $5m represented ~1 x revenue on a distressed asset. It was a play based on the previous owners of Visage being financially inept, that PME could better manage the finances of the company and that Visage 6 would complement PME's own software platforms. PME sold amira (after combining some of its own research projects) in 2012, I think, $15m at this stage represented about 4 x revenue and 15 x earnings, at the time that was a good deal... given some of the insane valuations in tech/software world, I bet PME management are kicking themselves for it