Ann: Shareholder Update & Appendix 4C - March Quarter 2015, page-19

Interesting update.

Not much detail or apparent progress of note on postal lockers and lots of detail on IXP which is not really a significant contributor to revenue or earnings from what I recall. All that extra commentary is perhaps trying to cushion the fall in numbers compared to the prior year.

And for first time that I recall they are using the terms "increasingly competitive" and "commodity".

I think parcel lockers are hard to differentiate and their technology doesn't appear to be that unique, and so they look like they will experience margin pressure or lose tenders if they don't reduce margins to be more competitive cost wise, and those with greater scale and financial flexibility with suppliers may do better.

The constant reference to the Dec/Jan slowdown and the Feb manufacturing facility shut down is sounding a bit tedious too.

And the repeated reference to meeting revenue and earnings targets "subject to timing" is also getting a bit tedious, sounds like they are bracing for a miss come the June quarter, and may have been too optimistic in upgrading their targets to begin with.

They are operating in an increasingly global and competitive environment and short of being a takeover target I'm not so convinced that they can ride this out.

I have decided to replace this speculative stock in my portfolio with another one with better prospects.