Quarterly Shortly, page-75

quotes from the 2016 annual report released on 30th Sept:
"The company is looking for revenue growth through transaction fees plus royalties and commissions from a share of content/product sales along with selected subscription billing, which has historically delivered high double digit return on investment. Based on historical data, SmartTrans expects subscription-based billing to deliver revenue to the company over a number of years. "

Why then has revenue dropped from $4.2m to $1.3m when the annual report led us to expect revenue from subscriptions to keep rising qtr on qtr.

and then this: "Revenue in the latter part of financial year 2016 levelled off, as having built up a substantial database of recurring customers by concentrating upon volume rather than margin and having gained credibility in the market place, the company moved its focus towards marketing products with higher gross margins and those products which are expected to provide higher lifetime customer value to the company. Whilst this is anticipated to reduce gross revenue in the immediate term, it is also expected to increase the overall return to the company."

Why does shifting focus towards products with a higher margin lead to such a sudden drop off in the subscription based revenue which was supposed to just keep on rising month on month? When did the company decide to shift its focus, and why was the market not informed at that time? Since the annual report was released at the end of Sept, the drop off in revenue from subscriptions must be been very apparent to the management of the company well before then- but not a peep from the company. All their releases to the market during the Sept qtr only indicated new products and new revenue streams being generated immediately. We were being led to expect revenue well exceeding last quarter's revenue of $4.2m, albeit it potentially higher costs incurred.