Overall I was reasonably happy with the report, but like many...

Overall I was reasonably happy with the report, but like many was hoping for more revenue.

Nevertheless the company is growing in the right direction and its percentage growth in recurring revenue is pleasing to see.

I am hopeful that by the end of next quarter Bob will not have to put another gold coin in his jar as I am expecting in cash terms to come close to breaking even.

This is because from a revenue point we have a growing list of enterprise clients and we are told they are accelerating globally. From 26 to now 80.

Also VSN Version 2.2 is due to be released in December 2021. Admittedly this would have more impact In the March 2021 quarter, but must also have some value in the December 2021 quarter.

We also have some cash receivables for the September quarter $2Mil, which will not be banked until the September quarter.

All these factors should help to grow our revenue in the next quarter and we know that on the basis of seasonality December is a good quarter.

On the other hand we had some particularly high one off expenses in the September quarter, which are unlikely to be a factor in the December quarter.. R&D was up by approx. $600K from the previous quarter due to building Version 2.2. I would not expect it to be as high in the next quarter.

Admin and corporate costs were up by $800K compared with the previous quarter. due to one off May/June ANREO (what ever that means)and reduction of other payables.

Management are also saying that they will pursue other initiatives to reduce expenses by $150/$200K per quarter.

If you take all these factors into account and the rise in gross profit percentage recoverable, I believe we will come close the breaking even next quarter. In the past we have been told a number of porkies. I remember JT saying we would break even some time ago, but it never eventuated. However I believe the new Chairman of the board by his record is a man of integrity and what is said in this quarterly report is believable.