The figures are certainly disappointing at first glance. However...

The figures are certainly disappointing at first glance. However after some thought, the reasons posted above by others could help account for them.

When I last spoke to GG, he mentioned that there were local govt agencies approaching Nearmap that they hadn't even targeted. I percieved this as a positive, yet it isn't reflected in the quarterlies, which show a total of maybe 6 x local govt (ie $25K) sales, or even less larger sales. However, as Pinto rightly pointed out, govt agencies wont and dont pay until the due date (and often after), so these sales would not be recorded in the quarterlies. GG also stated that with Govt agencies, the sale process rapidly moves to 70%, while the last 30% of the sale takes much longer due to internal Govt processes/sign-offs etc. He was confident there were sales pending, but it was just a matter of moving through these final stages. Now this doesn't mean these sales are guaranteed, but it does suggest there is interest in the market.

On the flip side - at the time of our discussion there were no large sales to report. I have since heard rumours of problems with the licencing to large corporations (ie the $1mill + non-govt clients). I am not aware of any changes being made yet to remedy this situation, and until changes are implemented, we may not see many of these sales executed. This may go some way to explain the change of staff and marketing teams to the larger clients in Nearmap recently - hopefully for the positive.

Nearmap's technology is first class, but ultimately it is the market (govt market that is) that will decide whether they can afford to pay for this technology in todays economic climate. On the other hand, they will also be considering whether they can afford not to.

I'm still holding until the mid-year results, and the subsequent market forecast that Nearmap will be able to pull together based on 6 months of results. In the meantime, the silence from Ipernica is deafening. Some news to keep us informed would be great.

SCOZi