annual report.loss for year. can't really compare with last year...

annual report.
loss for year. can't really compare with last year as different company with acquisition performed.
disappointing first 1/2 year performance, with much better sales on last two qtrs.

seems that PBX side of business did keep increasing much better- with loss of sales reps they dropped back some 25% at Q3 on previous Q2 qtr, but then to deliver a very good uplift on Q4- looks like the networking PBX acquisition really took an extra 6 months to bed down and now is on track.

what was most interesting was the poor beam results. They have said that Beam delivers good profit, but with no sales then no profit....interesting large amount of sales in Q2 compared with q's thereafter - which is where the big diff in total Q3 sales occurred....

Seems to me that it's Michael Capocchi- MD of BEAM that needs to answer....Ian May has been slow an not delivered as per forecasts but indeed the PBX networking side has shown strong growth in Q4- keep up this growth and it underpins the company. It's Beam that needs to deliver the sales as that's the big kicker in terms of profit....plenty of resellers so there must be some sales soon, also the revenue commission on network time should start to underpin Beam with a monthly base revenue component (albeit commissions are 100% profit).
But to deliver only 363k of revenue in Q3 must be explained- that was a very poor performance and greatly affected Tele-IP.

There has been talk of Ian May bein overpaid- but have a look at Michael Capocchi salary of approx 25% more than Ian May who is the MD of the whole company- if there is a salary cut for non performance there is your man for sure!!

However I’d like to understand what Opex and Overhead Beam contributes to tele-IP so we can actually understand which division is costing and not delivering as per targets. If Beam has say 30% of monthly costs then it should be delivering 30% of revenue- seen as it’s doing 25% at the moment, I wonder if this is our breakeven monthly revenue target for both divisions.
An increase of 500k in Beam together with say 500k more by PBX and networking division should see TEE with about 1m at 40% margin or 400k more profit….that would be a good sign of solid growth.

However Beam did turn a 300k profit for the year- to achieve a consistent 1M a month should have seen a lot more….
No that bad a result actually considering we already knew about the first 3 bad qtrs,….interesting to see Beam still made a profit- albeit a little one, then again all the relocation and integration costs of premises would be booked to the networking division rather than shared across the whole company- aka Beam get’s away with booking some of those corporate restructure costs…

One more thing- seems the acquisition was not fully paid from shares issues, so working capital went to paying last of acquisition costs- mmmm that means Tele-IP were short on working capital and jence could have impacted on deals- particularly Beam deals where you have to draw down capital to build the product…