>So sorry H you got it wrong again..
Thing is Brett, I have never been wrong on this one. I said from the very start that their VIN product will never work, and it hasn't. Well over $100m spent, and it is still "in testing." The KPMG report was kept secret, even from shareholders. The promised review of their IP never materialised.
I said from the start it would never sell, and it hasn't. The obvious alternative for commercial applications ("SSH") is free, technically proven and ubiquitous. The heavy hitters in the industry, like Cisco, have their own alternatives which they sell to niche customers. Pretending VIN has sold to iSoftStone does not wash. "Selling" to your mates does not count. Pilot programmes like the Onyx one announced last November have all just disappeared without trace.
No domestic users want VIN either. Telstra failed to sell it, China Telecom have failed to sell it, and it never sold in Europe or the USA. I said from the start, VIN has no place in the market, and so it has proved, even in times of desperate need for this type of product.
What has changed recently is the move to vertical markets. The water project allowed them to bank initial revenue of $460,000, and in his last video interview JT confirmed the design phase's $1.1m would be received before year end. That makes up a good chunk of the revenues of the quarter just ended.
There is nothing wrong with taking vertical market projects, but it is not the recurring revenue market. It is one off projects, and rivals like Capgemini, Infosys and Accenture will walk all over a little player like Netlinkz. It is only their link with iSoftStone which got them their absurdly overvalued Sichuan Province water sanitation plant work.
When the vertical market work dries up (and there does not seem to be much more on the horizon at the moment) they will go back to being dependent on VIN sales. That is never going to happen, so, more capital raises I guess.
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