Shenanigans at play, page-165

Yes DUB have been doing wholesale agreements with Telco and ICT Partners for a while now; Cloud Telecom, NTT Communications Solutions (linked globally to NTT Nippon), Inference Solutions (local Broadsoft partner), Commander (via M2), Go Cloud IT Singapore, Gateway ICT, Voice Factory and BlueIP. Issue is there has been little take up from the early agreements. The last two had better result but still only 3,000 between them. So what’s needed is a ‘Major’ Telco signing with real subscription numbers (not just potential customers).

Agree the 120 days revenue lag at best shouldn’t be a surprise to DUB management who are all supposed to have 20 years Telco experience. Big Bank revenue hitting books should ease cash burn this quarter, but still wondering how much of the 1.7mill project revenue hits DUB books as opposed to cost of sale going to the other service provider partnering on the project (expect to see ‘Other Working Capital’ increase more). The funds from the R&D tax rebate were received in January so will be good to see how much of 1.3mill went through. These two items will offset cash burn. I believe unless they sign a major quickly then CR will be back on the agenda. Next quarterly report due April will be key.

DUB always had a play in both, selling direct to enterprise and also the Telco/ICT provider wholesale model. Clearly they discovered the issue with selling into Enterprise customers it is a very long sales cycle, tiers and tiers of management and governance, and they also need to employ a sales force which they haven’t really done. It was Gavin’s role to develop enterprise sales channel but didn’t quite work out.

Hope that helps?