'QTK have a "annual billing cycle" for its clients.That...

'QTK have a "annual billing cycle" for its clients.

That is........clients are billed in advance for monitoring fees either yearly,quarterly and even monthly.'

Good stuff Smuggler. Now if a client is billed monthly then it is not an annual billing cycle. It is a monthly billing cycle. Most businesses that have recurring revenues works exactly the same way.

So the question is how much of QTKs recurring business is charged on monthly, quarterly and yearly basis? If most is on a yearly billing cycle than yes the fact that revenues for the quarter have NOT increased is nothing to be concerned about. However if most are on quarterlies and monthly then it is a concern as with the number of sales you mentioned in the quarter, the revenue figure and repetitive revenues kicking in, you would have expected a much higher quarterly income figure.

Next quarter will give a much better indication. If revenues havent climbed in that quarter I would be abit suspicious (unless of course all contracts are yearly maintenance contracts).