TNE Short attack, page-12

I have only read the AFR article which relates to the GMT report, but from what I read it says that they inflated profits by 200% using revenue related tricks. This report has had a major impact on TNE’s share price, so the ASX probably should investigate. Either GMTs research is wrong, or TNE have manipulated accounting rules, and I don’t know the truth of it, apart from being amazed at their numbers when it didn’t drop to the extent I expected when moving to a SAAS model normally harmonises revenue as you don’t get the sugar hit that upfront licences provide. I also didn’t like the way they changed from a open model for R&D to mostly capexed in the same year as revenue recognition changed, really clouded the numbers.

I do think this needs to be investigated though and either GMT produce their facts or TNE gives some comfort to investors,