any opinions on amcom

Amcom seem to be doing pretty bloody well in Perth, Adelaide and Darwin for a small telco. Is there a rumour of possible consolidation with another operator going around? That maybe spiked the share price last week because the good quarterly result hasn't done much. Nice thing about Amcom is they face less competition in the west than telcos in the east.


Amcom Telecommunications Limited (ASX: AMM), the
broadband solutions provider to large corporate, government and carrier clients in Adelaide, Perth and Darwin on Friday released its cash flow results
for the December quarter of financial year 2003 ("2QFY03"), and further, the Company is today very pleased to report its maiden net profit after tax for the December 2002 half.

Management confirms that profit and loss results were in line with estimates released to the market in October 2002 and reiterated in December 2002. The results were achieved after continuing to meet forecast sales targets and delivering significant costs savings through stringent controls and operating efficiencies.

The Company expects to report its complete half-year result to December 2002 in mid to late February.

SIGNIFICANT ITEMS

* Sales Revenue for the December quarter were $2.981 million as per budget (sales growth in core activities up 68% on the previous corresponding period);

* Sales Revenue for the December 2002 half of $5.728 million;

* Maiden net profit after tax for the December 2002 half of around $63,000.

SIGNIFICANT CASH FLOW ITEMS FOR THE QUARTER

* Net operating cash flow was $0.47 million representing a 10% improvement over the September 2002 quarter;

* Net investing cash flows comprised:

- Network payment of $0.472 million to equipment vendor from the original network construction. The final payment for item is $0.2 million and is to be paid in the March 2003 quarter;

- Non-current assets -attributed to costs of convertible note issue and share purchase incentive scheme;

- Final Payment of $0.70 million to residual creditors arising from the original November 2001 sell down of IP1 to ABN Amro;

* Completion of convertible note issue of $3 million (before costs) to provide working capital for accelerating customer connections - funds of $2.52 million settled in December quarter.

* As part of the accelerated business plan new customer connection costs of $0.561 million. Note: The accelerated growth case is expected to be again self-funding from net operating cash flows by June 2003;

* Special one-off Project Capex of $0.26 million; and

* Reduction of BankWest Facility by $0.75 million including a cash payment of $0.53 million.