I got the exact same response (verbatim) from Maureen. I asked her to clarify to try and get a little more information. She was very quick to reply to my emails. Here's how our email exchange went:
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Hello,
The share price of 1-page has continued to drop aggressively in recent weeks to a level near its cash on hand - a reason often cited as the company's source of strength.
Why has the company done nothing with regards to announcements to restore market confidence? One can only assume that the upcoming quarterly at the end of the month will be poor, as no news has been released even though its shareholders continue to bleed?
Regards,
xxxx
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Hi xxxx,
Thanks for your email.
We understand the share price decline is causing concern to shareholders. We release our 4C (quarterly cashflow report) on 30 August. This is a bit meaningless given it corresponds to revenue in Qtr 4 last year so we will aim to give more of an operational update also.
Regards,
Maureen
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Hi Maureen,
Thanks for your prompt reply!
I'm a little bit confused by your statement. What do you mean by the quarterly cash flow report being meaningless since it "corresponds to the revenue in q4 last year?" Is this due to the 3-6 month "time lag" factor your reports refer to in revenue recognition? If this is the case, does that mean Source v3 is not speeding up revenue recognition and cash receipts as expected?
Again, I'm just a little confused with your response. Please correct me if I misunderstood what you meant.
Thanks again,
xxxx
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Hi xxxx,
Sorry for not being clear.
In the old version of Source...
After the client signed up, it took a few months to deploy them / train them etc. And then they would use it to request pools and then we would invoice them at the end of the month. Then they would pay 90 days ...
So
- revenue is recognised based on invoices issued
- cashflow is recognised based on when the invoice is paid/ cash received
So the upcoming Qtr 2 cash report is basically revenues from invoices in qtr 4 last year - And the full year result will already have contained those revenue figures. So it's not new.
We report our half yearly result (profit and loss statement) in Sept so this will have more meaning.
Hence we are working on providing an update to the market at the 4C.
Hope thats clear.
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Sorry , Source 3.0 should reduce the time lag but it's only just being deployed to customers now.
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