NetLinkz, page-122

For those of us who have been in this stock for sometimes it has been a long and torturous process.

There are some here who remember the circumstances better than I, but it started out for me in the days when it was called I Webgate, acquired a new revolutionary security system from its developer, which was unique and won a number of awards.

- Initially it was proposed to sell the system in the USA, for defence & other purposes and a couple of management plans and associations were formed, but this failed for reasons that I can not recall.

- The focus was then switched back to Australia with the big hope that Telstra would come on board and use it. However this failed again and the business was virtually broke with no where to go.

- James Tsiolis then came on board and acquired much of the company and took it to China for larger scale development. There was a changing of the guard.

-`The software was developed to allow for use in mobile phones and the hope was through using thousands of employees over China that the product would be rolled out all over China. This failed to gain traction and the idea was dumped.

- They then switched to developing secure systems for larger organisations such as the Water Board in China.
Some early success, which then led to the establishment of IOT labs in Japan, India, Malaysia and Greece.
These IOT labs are costly to run and to date have not been successful as demonstrated by the meagre income derived from them todate as reported at the AGM..

- It appears to me that at this time questions were being asked about J T's management and where the company was going. Perhaps he even asked himself. A new experience chairman of the board was brought in named Stephen Gibbs to tidy up the show.

He immediately set about strengthening the balance sheet and getting rid of as much debt as possible.

He was also no doubt involved in working towards developing a new income model more focused on deferred income rather than up front payment.

Also there have been no further forays into overseas IOT labs since he has been at the wheel.

He is more focussed on cost controls then others previously.

- So where are we now?
I believe there has been another subtle changing of the guard at NET.
JT in my opinion is not as a dominant player at NET as he has been in the past.

It is more of a team effort now than what it has been in the past led by SG. It is noted that all directors supported the last quarterly issued by the company.
JT is still a dominant person in the company as a consequence of his large shareholding, but it appears to me that his role is not as dominant as it has been in the past.

Moving forward, as always it will depend on what revenue NET can deliver in the future. If the product does not sell than there is no future, but from comments made in the last quarterly report, there are good reasons to believe growth will continue..

Only time will tell, but I am much more relaxed with SG running the show than what I was in the past.