PRO 2.16% 90.5¢ prophecy international holdings limited

To me both are good prospects as long as you don't go too crazy...

  1. 64 Posts.
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    To me both are good prospects as long as you don't go too crazy with how much you allocate. I've taken some profits in Senetas and am looking at PRO as a place to diversify within the 'security/data' realm.

    To answer my own question about sales structure I'll quote verbatim from the Annual Report.......
    Sale of Goods = "Sales of the consolidated group's products are structured around initial licence fees plus annual licence fees. Initial licence fees together with time and materials consulting services contracts are recognised as income in the year of invoicing. A percentage of annual licence fees is recognised as income in the year of invoicing, the balance covers forward maintenance and support commitments and is brought to account on a pro-rata basis"

    Prelim report quotes sale of goods at $8.9m out of the total $9.9m, so they earnt about $1m in annual 'services' fees not claimed on previous years sales - not much really but it will grow over time as long as upfront sales continue to grow.

    Does the cash receipts of $8.1m vs sales revenue of $8.9m suggests they're claiming about 10% extra ontop of the initial licence in the revenue column for expected follow up annual licences .........but the remaining % they'll get down the track for pro-rata maintenance and support is still undisclosed......?? To me its important to know this split.

    If no-one else can tell me how much annual licences are likely to be compared with initial, or what splits of the follow up become 'revenue', I'll ask the company and can post any reply I receive.
 
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