great post.....I believe in cash flow.....the June positive...

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buckets36

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14/07/20

12:57

Post #: 45851934
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Originally posted by macmaas: ↑

Todays announcement may not be anything to get excited about however the part about "Positive underlying operating cash flows in the month of June" may give us something to analyse. My assumption is that they would exclude redundancy and ATO grants from underlying operating CF.

Therefore using the lowest "underlying" expenses from my above table of $12.6m/3 for June to get a monthly figure, then to be underlying cash flow positive cash receipts would need to exceed $4.2m or ~$50.4m annualised. I used the lowest figure as it is the less flattering but also because the June figure could include all of the cost reductions theoretically so therefore at an underlying level should be the lowest they will be until the 20% management paycut is removed.

Trying to find the least beneficial outcome for this - the increase in cash receipts could be from one-off type services revenue that wont be reoccurring. But if thats not the case its certainly an incremental positive.

Another potential positive is that the cash balance is higher than the March 31 figure of $33.8m vs my projection above of $31.6m (both include the ATO refund but my opex figures may have been too high or assumed not enough cost cuts would flow through).

JP - If Citi is accurate on the pre FX increase in ARR, then that is another incremental positive.

We really need the annual report to give a better idea of where the expenses sit in terms of a USD/EUR/DKK/CHF etc split (and of course revenues).

Ive got a a longer term view on the stock which is why i find the hysteria around each quarter amusing, but by the same token i would be concerned if there was a drop in ARR coupled with a one off bump in revenues due to non-ARR services etc.

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great post.....

I believe in cash flow.....the June positive cashflow comment based on regular Income vs regular costs is a sensational pivot point IMO !!!!!!

I feel good about SP future from here....

LVT Price at posting: 22.5¢ Sentiment: Buy Disclosure: Held
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