MY point is it's not clear why the payments were taken right now when the co needs cash and what exactly they went for. Revenue- good inline with budget. But staff costs- OUCHHHHHH I thought we would expect $433k or thereabouts staff costs, but this is was BIG shock of more than double that with a very weak explanation. Why wasn't it explained previously these payments were due, or why not explain them now and take them over a few qtrs so as to mitigate, or to make the company results look better for all shareholders and show faith in future earning potential of company.....
incentive payments- $ to Capochhi one would guess
Extra related parties, what legal accounting fees would be required that is worth that much, and audit is about 15-20k so that's not 96k! and the transactions for NS was done earlier in the year....
Directors fees- lump sum payment for arrears? or what? If they were waiting for this for years hen surely they can get some now and some next qtr to help the companies cashflow.
first qtr with some cash everyone put their hands in the till, INSTEAD of doing it over a few qtrs... I don't like seeing this as it CLEARLY indicates there is money now, grab it quick as next qtr it may not be there.
Sales commissions for sales reps are paid on sales when they are shipped as is standard practice, not lump summed at the end of the year- that is a banking environment where they get a bonus paid at end of year from profits....since no profits in WRR then no bonus under that scheme.
Clever One, you can't add back in a deposit recorded in the previous qtr to this qtr- that's part of business, cash deposit, rest paid on shipment and NORMAL procedure in OEM or hardware manufacturers cash accounting procedures. One would expect that there are cash deposits in this qtr for next qtr (current now) delivery.....and so is the normal 90 day funding gap in manufacturer's like WRR. They get some $ deposit, but require working capital to build the product before they can ship and invoice it to get the cash for it 1 step back, 2 steps forward....
what you need to look at is the operating purchases, which $3.5M in Q2 08 is more than sales of $3.3M in Q3 08 it's $2.6M with sales of $3.6M which is looking better for margin, but maybe not so good for forward orders
WRR Price at posting:
0.5¢ Sentiment: Hold Disclosure: Held
