great profit & dividend!, page-11

re: snn report ###Just had a quick look through the report, seems they receive a majority of thier revenue through one government contract. ####

50% infact, $12 million, and it's not a government contract.
It's a 3 year deal, and part of a long going relationship with an established unknown client.
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###I would consider this a bit dangerous, especially if you read the operating margins on some of the hardware rollouts. #####

I think a little knowledge can be a dangerous thing, Sonnets margins are the highest in the industry.
They purchased Senteq for $1 million, they have just upgraded their network for $760,000.00. and they still have $4 million in the bank.
They are paying a Div of 1.5c per share which is a yeild of 8%.............so how does this convert to your "operating margins" comment ?
This is not a company operating on thin margins.

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###Management is critical here in turning this into a profitable business.####

it is profitable, did you read the report ?
$24 million in Rev's $2.4 million nett profit after tax.

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###VGL and DTL plus others have been in the industry a long time and know the tricks of the trade, again much depends on the management here.###

How long do you think SNN has been around ? they started in IT in 2000, and has since been restructured.
The enterty it's self goes way back to 1990......and some of those assets still remain.

Which company did Marcel Dufour (ceo) come from ? NTG he owns 20% of SNN.
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###If you read what the likes of HP and co. and are doing overseas with outsourcing and value added services and the partnership agreements they are winning, in a way competing for the same business. A massive growth area for these companies, and being rolled out in Australia presently.###

Could you provide a link to these storys ?

SNN's client include -IBM-MICROSOFT-HP-NOKIA-CISCO-NOVELL'S-VERITAS-CITRIX-TREND-KINETICA ETC.......notice HP are in the client list.......Sonnet are happy to see these guys in Australia....as network infrastructures grow so does sonnet.

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###SNN and others are at the mercy of the OEM's such as HP etc, they dictate the play, you play the game or die.###

This comment is in line with the rest of your testimony like (((((Management is critical here in turning this into a profitable business))))) clearly you have no idea.

I'm all for constructive comments, but the only thing you got right was they have exposure to high income from one source (clearly dangerous). but a resonable risk when you consider the previous on going history of this contract and the newly signed 3 year agreement.

Anyway each to his own, but if your going to make comments please do some research first.

Cheers Tex.