General Discussion / Social Media, page-2038

Hi @alnby

Perhaps the information below would be of some assistance.

There are many knowledgeable posters in this forum so best to frame your questions in a way that encourages robust and informative discussion.

Gross margins

• development costs etc are expensed in full under cost of sales and not capitalised, hence one off hit
• Cost of sales include upfront third party product fees and services etc
• affected by increased numbers in the service and development team

Revenues

• Due to the different budget, the second half of the financial year is when sales etc kick into gear, bearing in mind that UK remains the biggest market
• lag between increased expenses of sales and marketing before new revenues (hopefully)
• procurement process in the public health sector is very slow and it takes time to execute large and complex contracts
• timing difference between when revenues can be recognised ( based in milestones) vs ongoing recognised revenues for recurring services etc
• revenues are recognised differently for each product, service or combinations