Hi guysI found the following article over the long-weekend and...

Hi guys

I found the following article over the long-weekend and thought I should share here..

Cash Is King For Small Caps - FNArena
Senetas Corporation ((SEN))
Similarly, the high-speed encryption specialist and erstwhile market darling lost a cool -$10.8 million in the 2021-22 year, which on paper would wipe out its $10.7m cash kitty if repeated.But there are some intricacies to consider beyond the reported bottom-line number. One is that the core Senetas business was profitable to the tune of $1.6 million, with the red ink attributable to the -$12.7m loss incurred by the Votiro Cybersec business.Senetas holds 61% of the Israel-based Votiro, which is a leader in “disarm and reconstruction”. This is not a military term but refers to taking apart digital documents and then reassembling them without any viral nasties, which sounds like something hacking victims Optus or Medibank Private should have been doing. Excluding non-cash items, Senetas’s ‘real’ loss was a more palatable -$2.7 million.Senetas last week said that Votiro had increased its new customer pipeline by 60% since July this year, with annual recurring revenue expected to double in calendar 2022. What’s more, the business is expected to be cash flow break even by July 2023.Overall, Senetas’ revenue is humming along nicely, up 9% to $25.1 million in 2021-22. Votiro is the growth engine that will determine whether the company should be worth more than its beaten-down $49 million market cap (albeit circa 20% higher over the last week).