As a major shareholder in Cirrus, Webcentral is particularly concerned about lack of clarity in Cirrus’ earnings guidance.In the announcement of its downgrade to $2m adjusted EBITDA(pre-options) on 5 July 2021, the Cirrus Board said that “a number of significant product and licensing deals due to close late Q4 are now expected to contribute to FY22. Cirrus has not provided information on the likely financial impact of these deferred product and licensing deals. In its Letter to Shareholders on 4 October 2021, the incumbent Cirrus Board stated that it expected “cost savings of approximately $4m on an annualised basis.” Does this mean that shareholders can expect an earnings improvement from $1.9m plus $2.5m plus the benefit of the deferred product and licensing deals from FY21 and $4m in savings identified ($4m * 75%) to $7.4m FY22? Shareholders are entitled to know this important information. And if it is $7.4M, what is the probability of that being achieved? There is not enough transparency and would help if they reported quarterly so we know whats going on and can make an informed decision.
