"As there was over 4mil booked in or around january 16, cash...

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03/08/16

10:49

Post #: 18432600
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Originally posted by Simmy_Gelati ↑

Ive done a bit of research on the previous quarterlys. 1pg state that cash receipts lag new bookings by 3 to 6 months. As there was over 4mil booked in or around january 16, cash receipts of this amount should be recognised this upcoming quarterly.

However this should be no excuse for the company to ramp up spending by excessive amounts which has seen staff costs go from 800k a quarter to about 3mil a quarter witnin one year. This amount does not include expenses on research and development of about 2 mil in the last quarter (5mil all up). On the promise that spending will be cut to less than $1million a month all expenses included, quarterly expenses would be around the 3mil mark, a saving of 2mil from the last quarterly and in-line with expenses in the quarter announced nov 2015.

3mil per quarter x 4 = 12mil expenses per annum (approx). Cash receipts of at least 4mil+ this upcoming quarter. If no revenue is achieved for the rest of the year, we would be looking at losses of about 7-8mil which in itself is an improvement from the last full year report showing 14mil losses.

However i am quite optimistic further new bookings and upsells will take place given the 90% retention rate and on the basis the company keeps it promises; this is a long term hold as the company achieves break even or profit by end of 2017 (through recurring revenue, new boookings and upsells). Last we take into consideration the $40m approx in cash or savings the company has (regardless of how it came to be they received this amount; be it capital raising or other).

The added bonus will be immediate revenue recognition with the upgraded platform which i am looking forward to; it will replace the idea of 'new bookings' and ease shareholder concern and confusion.

I hold 41000 shares due to the above reasons. I am already down several thousand dollars given current share price. I did not sell despite a 6k profit at 67c based on the reasons i listed above and belief in my research. Good luck to all and lets hope the company can keep its promises.

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"As there was over 4mil booked in or around january 16, cash receipts of this amount should be recognised this upcoming quarterly"

Simmy the $4.2m in the January qtr was annualised bookings (spaced over the year), so certainly won't be all coming through in any one quarter.

1PG Price at posting: 35.0¢ Sentiment: Hold Disclosure: Not Held
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"As there was over 4mil booked in or around january 16, cash...

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