I have had a brief conversation with a representative of DTS. I need to inform you that I was not expecting a return call from the company and that I spoke with this person in the evening after having a few drinks after work. Oh well, it is Friday ….
My understanding following our conversation is that:
Firstly, the company is aware of shareholder concerns regarding cash receipts.
Secondly, to the knowledge of the person I spoke with, QSR payments are not based on system performance.
Thirdly, to the knowledge of the person I spoke with, agreements with QSR chains are not as simple as perhaps many of us thought i.e. that X restaurants times Y standard rate = XY revenue.
Unfortunately those answers raise some fairly sticky questions along the lines outlined by Cronus.
I am now going to give management the benefit of the doubt and vote YES in the upcoming meeting.
However, I still have a very very uneasy feeling that I don’t really understand why cash receipts are not growing and I’d like to hear a full explanation to shareholders directly from management at the upcoming EGM.