Ok. I am illiterate. I just look at the things like profit & loss. I look at it like this, if it was my company and I had spent $40M over 9 years and am still losing $7M per year, I reckon I would be considered an Epic Failure. Yes or no?
ENG FY09 is a crap report and the company is performing well under reasonable expectations. Where is the growth????
As a peer comparison : MNF report out today. [Financial Illiterate Mode On] Note the word Profit in the report, after just 3 years and $6.6M of losses to get there. It owes about $3.3M and has about $1.6M of cash & Equiv (plus $0.89M in prepaid deferred revenue not reflected in the FY09 revenue but booked as a liability, presume after costs to render services a benefit of approx $0.5M). Revenue growth rate of 43% in FY09 from $6.8M to $9.8M. It appears believable that growth will continue and that OS debt will be able to be paid down over the course of FY10. Of course they could easily do a cap raise/rights issue at about 10c to address debt immediately. Plenty of options there.
MNF and ENG are very similar companies offering the same products to the same marketplace for about the same money. Why is ENG failing where MNF prospers?
ENG Price at posting:
$1.00 Sentiment: None Disclosure: Not Held
