commander update, page-10

Hi Astoria

I'm not so confident, at all

The various banking agreements were replaced by a single covenant back in January, when the debt was renegotiated, and it is related to EBIDTA. Which I presume means that Commander MUST acheive a certain level of EBIDTA, in order to maintain that convenant. If they don't, I suspect that all bets are off.

7 Mil is due to be repayed in Oct 08, and then a WHOPPING 115 Mil is due in Oct 09 !!

And if they don't achieve profitability, and soon, then the banks DO have a choice. Keep on loosing good money after bad, or, cut their losses and run

As for announcement of large contract wins when they released YET ANOTHER profit downgrade back on 4th June, well in that press/asx release, there was mention of a few awards they had received, mention of a Lan upgrade for a customer that occurred quite some time ago, and mention of 2 vpn deals worth 490K ( 490K spread over how many years is not mentioned). And mention of a few contract extensions. Etc, etc

So, hardly anything earth shattering

What was more significant, was the LOSS of the DOTARS contract. Which was worth many millions a year in services to them

As for other companies in the same space finding it tough ? Well, no, they aren't. A lot of companies are doing well in the same space, and winning significant services business, Often contracts in the many ten's of millions.

For example ASG Group, KAZ Group, Unisys, Fujitsu, IBM, Telstra etc, etc are all regularly winning significant services business

And other companies are regularly winning significant voice business

Every one it seems, but Commander