directors buy more, page-17

I’m a little confused by the communication on Friday.

The response to the asx query stated:
‘The market may have been expecting a further update on the current cash position of the business, of which the Company did not provide in addition to the statutory accounts. The Company made an announcement of the first receipt of cash for the sale of its Nexcode product on 15 June 2009 and the Company stated at that time it would not be providing cash updates on a regular basis in the future. The Company is maintaining this position. ‘


The announcement on 15th June stated:
‘The Directors of Entertainment Media & Telecoms Corporation Limited (ETC) are pleased to announce that the Company’s cash balance as of 15th June, 2009 is in excess of $A10,000,000 ($A ten million), as a result of receiving significant cash payments from sales of our Nexcode national security solution.

While it is not our intention to report cash receipts from our customers, the Directors feel that this is a market sensitive issue and widely awaited by the market, and therefore make an exception in this case.

The Directors maintain that we are on track to deliver A$48M NPAT for FY2009, and it is our expectation that the final cash position for FY2009 will show additional cash flows from Nexcode sales.’

The interpretation of ‘market sensitivity’ seems to be based on convenience to the company, the cash update would have to be a far greater issue to the market now than it was in June.