There is some inconsistency in this company's reports.
From the last 4C report, if we add the recurring revenue of 4 quarters, it is $3.16m.
In the preliminary report, gross profit is $1.32m (revenue minus cost of sales). No note this time, but last year, cost of sale was in relation to reselling IT equipment.
Now, this raises the question of what should be classified as recurring and what should not be.
Further more, assumed non-recurring revenue = total revenue - recurring revenue = $4.2m - $3.6m = $600k. $600k non-recurring revenue vs cost of sales of $2.9m. Something just doesnt add up here. Are they now counting sales of IT equipment as part of recurring revenue now? IMO, for a Data Centre company, recurring revenue = money clients paid for renting the racks. IT equipment sales should not be part of recurring revenue. DC2 is not JB Hi Fi.
Creative accounting perhaps? Wonder how this company will react if a proper mid tier or higher auditor is appointed.
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