Ann: Recording of Investor Call Available, page-8

You mean that they made a big acquisition 1-2 years in advance of regulatory changes hurting the new acquisition?

Eg. Australia banning mobile subscription, impacting their revenue by approx $1.8m PA.

It does partly seem due to management, and partly a problem that was pretty difficult to foresee.

When I saw the 100% write-down of track, I was worrying that they made a large acquisition and would so soon be shutting it down. At least with the presentation, it sounds like the 100% write-down was for simplifying the accounting/reporting rather than having multiple partial write-downs. It does seem to be a business in a downtrend, but one that should continue to generate cash for the business for some time, so is not worth nil.

If CM8 had not invested in the new division (Crowd Media), then we'd be in a net cash position already. How many other ASX companies can claim that? Though management seem to think that the new division will be better than simply accumulating cash and/or paying dividends.