superb quarterly cash flow report, page-4

On the question of sustainability of revenues, consider these points.....

Revenues were up $4.1 million from March quarter to June quarter. If we attribute that all to the the business acquisitions that were settled on 4 April, about one week after the start of the quarter, then for a full quarter the revenue increase would have been about $4.5 million.

Also, the cash flow report does not include as revenue amounts paid by customers after the quarter end that relate to services provided by PHG before the quarter end. The annual report, using accrual accounting, will include these accounts receivable at 30 June in the 2008 revenues.

In the case of the latest business acquisitions, because they are new on the books, there will be no corresponding accural adjustments at the begining of the quarter. This will mean that revenues for the quarter for purposes of calculating profit will be higher than reported in the cash flow report; maybe substantially given that the health funds would enjoy commercial payment terms that would normally extend their payment due dates into July.