The real story in this announcement is they had to move away from the initial Yojee platform because it had too many bugs, it could not be scaled to handle many concurrent large enterprises, it was not modular enough to accommodate a multitude of custom configurations. FYI, see quotations below.
"...As such, the focus for the quarter was on upgrading the back-end infrastructure to make it capable of mass utilisation and faster custom deployments..."
"the Company undertook a version 2.0 build of its infrastructure using Elixir and Erlang technology which redefined stability and speed per transaction, created new capabilities in at-scale tasks and a delivered a large reduction in errors. The modular concurrent programming used in the product rebuild allows Yojee to deploy a white-labelled, individually branded application for a customer in a matter of hours and all the customisations are now more easily implemented."
"Software sales have continued to show solid grow during the quarter despite the Company no longer focusing on its version 1.0 product and now transitioning to its version 2.0 product "
As it does not appear that the company has begun earning revenues from the earlier deals (Cambodia, Indonesia, Scharff (going live soon)), it would not be far fetched to conclude that they had to put most of those projects on hold when they realized the initial platform was not going to cut it. This is OK, you would rather have them make these major changes before on-boarding marquee customers like SILA and potentially UPS.
They have provided us with various milestones in terms of upcoming go live dates. When they release the June Quarter 4C, we should see a meaningful (hopefully significant) increase in revenue/cash receipts.
For those talking about a potential CR, I doubt Yojee will do any additional CR unless they do it to make way for cornerstone investors such Fidelity, Allan Gray etc..
In the meantime, I look forward to adding more shares to my portfolio as the share price crosses below c15.
GLTUA!!!!
YOJ Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
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