yeah... compare the cash flow statement and the revenue figures.
the only problem is that because they only recently shifted to subsciption in the December quarter, it is more than likely that the first two quarters cash inflows are overstated
We will need to wait until August when the Full Year financial report is released before we can see what assumptions they used to recognise revenue.
I've followed many tech companies over the years and invariably they screw up their revenue recognition at some stage when they try to become too clever. I hope NEA employ conservative accountants.
This business right now is in the sweet spot... doesn't seem to be much competition even though there probably are low barriers to entry and competitors with almost infinitely deep pockets (Nokia / Google).
I still expect this company to be taken over if they prove their technology has a sustainable advantage over others.
I wonder if this technology can be used to scan oceans as well?
NEA Price at posting:
23.5¢ Sentiment: Hold Disclosure: Held
