Ann: FY2010 results , page-7

Well done to management for turning the ship around. Cash flow for the last quarter was positive to the tune of $87K. Positive but still "marginal".
There are a couple of red alerts in the final result for me.
Debtors sit at $2.2M which is an unhealthy 36% of total revenue. You'd like to see this percentage drop dramatically this year.
Cash as at July 1, 2009 was $380,603
Cash as at June 30, 2010 was $2,599,144
Overall, an increase of $2,218,541 but they raised $5,420,000 throughout the year from share issues. In effect, they still burnt $3.2M.
The positive in that burn rate is the last quarter where the bleeding stopped and they actually increased cash by $87,000.
The Convertible note is due to be repaid in January. To me, it looks likely that they will be able to repay that note but it will leave the cupboard almost bare.
The signs are somewhat encouraging but momentum has to increase quickly in this first half. It would be comforting to see some major contracts signed soon as we are already two months into the 1st half.
Overall for me, the stock doesn't make me sit up and say it's a straight out buy. I am somewhat concerned at the possibility of a capital raising between now and December so as to give the company breathing space coming into the deadline for the debt repayment.
Personally, I'd take a dabble at 0.005c but it's probably not going down there unless there is a cap raising so I'll sit and watch.