It was about expectation management, which was poor. The rollout is going how it should have been expected to. Contracts take time, and the pipeline looks pretty good now. If you noticed the MD’s address (page 3), they produced more machines in the past 6 months than they have ever done in a full year, so the US in the first year must be at least a doubling (or tripling, if it continues at this rate) of BAU. The revenue model is different though, with the hardware not paid separately up-front. So it should be more sustainable and less bumpy. All means to me they need the cash to build capacity, with the revenue to follow. Yes, no prior indication of a CR, but how many companies do that as it depresses the share price and makes any CR more dilutionary. That said, I prefer a rights issue, but they want a more diverse register I suspect.
CYC Price at posting:
$1.39 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)