The issues are firstly the excuse of revenue and contracts being pushed out into the next year as explained already. Secondly capitalising a percentage of the expense line now looks like an accounting move to decrease the current year's losses. Thirdly they are clearly burning too much cash in R&D and S&M without realising a substantial increase in revenue. Question is how much spend in R&D and S&M is required just to maintain the current revenue line ? Suspect wastage and inefficiencies along with increasing R&D maintenance spend is occurring and hence a belated "strategic review" as the Zuuse cash has all but been blown up now. Best result all round for shareholders would be a trade sale.
MPW Price at posting:
7.5¢ Sentiment: Hold Disclosure: Held
