remember; chinese contact $200m over 5 years

In November NBS announced a licensing agreement for Chinese Gas Tank project - NBS said "the agreement will provide ETC (now NBS) with revenue in the amount of $200 million in the initial 5 year period" .

The assumption many made that this $200 million would come in in roughly equal amounts over the five years. Certainly Lodge Partners (previously mentioned on this Board) seemed to assume this because even after the suspension of the Malaysian contract their profit projections seemed to assume the Chinese contact providing a "steady" cash flow.

In fact given the nature of the project one might have reasonably speculated that;

1. the revenues would be roughly equal over the years, or
2. the revenues would be higher in the initial roll out period and then be more or less steady over the remaining contract term.

In the previous financial year NBS had revenue of $65m of which about $61m appears to have derived from the Chinese contract, but NBS revenue in the following six months is not quite $2m.

*As far as I know NBS have not repudiated or amended their claims about the Chinese contract.

*In the six month report/presentation various things were mentioned by no comment was made about the collapse in revenue & also the fact that revenue of $2m is superficially inconsistent with the Chinese contract that typically should be generating $20USD per half year period.

It is surely material (reasonable) to expect NBS to properly explain these apparent inconsistencies?