Software Circle Share Discussion Threads

[igoe104] 17/1/2008 15:14

Think this is one for the bottom draw at the moment, hopefully they will sort there SAT rollout soon.

But as a business its looks to have a good future, but at the moment its hard to see that in these market conditions.

[apetley] 16/1/2008 12:12

They have grown the business.
Developed new products.
Attracted new customers.
Net profits continue to grow.
The delays in the roll out are frustrating but experience in the first 2 roll outs will be carried forward and should smooth those to come.
I like their confidence too that the tax law changes will not impact on earnings and so it should as SFT deal with VAT not the changed income tax.
I look forward to the dividend payout and hopefully it will be realised that the retreat in the shareprice has been well and truly overdone.

[slapdash] 16/1/2008 11:13

another investors chronicle tip gone belly up... slapper

[arthurly] 16/1/2008 09:19

explorer - they say 'net profits continue to grow', which should mean that profit for the year is at least as great as last year. The market clearly didn't think that they were going to do any better than this from a long while back. Their own internal expectations may have been higher but I don't think any of us expected any better.

Certainly I expected them to say that the new tax laws would reduce their future income and I think the share price has acted in accordance with that, recently. But they are saying that is not the case.

I think the market is pricing in a likelihood that their rollout problems will not be solved and the contract taken away from them. If that doesn't happen I would expect a very swift rise from these levels.

[explorer88] 16/1/2008 09:16

fatfish - good luck (imo, cash is king and with a little patience good stocks will be available at lower prices later this year)

[masurenguy] 16/1/2008 09:12

This mornings fall breached my stops and took me out. Still looks promising for the future but I agree with exp88 that this could still fall further in the current climate where any setbacks are severely punished.

Will sit on the sidelines and maybe look to get back in if and when some real progress becomes apparent.

[fatfish] 16/1/2008 09:09

exp88

if it falls a lot further i for one will be doubling up on my holding

[explorer88] 16/1/2008 09:06

profit warning and problems with rollout as predicted.

despite cash, bearing in mind current markets, this could fall quite a bit further.

[boadicea] 16/1/2008 08:10

The delays had been previously indicated and were already more than discounted in the share price imho. However, any excuse for a mark-down is good enough in present markets.

[arthurly] 16/1/2008 08:06

Overall re-assuring imho. My big worry was that much of the roll out income would not happen because of changes in the tax laws. Not worried about the problems with the roll out. These things happen when software introduced. Up to around £9.2m in cash now. + Dividend is a good sign.

[fatfish] 16/1/2008 07:56

i guess this wont inspire aint gonna send the share price into orbit
i like the last bit though looks like a divi




Regulatory Announcement

Go to market news section

Company Sinosoft Technology plc
TIDM SFT
Headline Trading Statement
Released 07:09 16-Jan-08
Number 8691L



RNS Number:8691L
Sinosoft Technology plc
16 January 2008



SINOSOFT TECHNOLOGY PLC
("SINOSOFT" OR THE "COMPANY")

TRADING UPDATE

Sinosoft, the China-based developer and provider of software and IT solutions to
Chinese regional and national government agencies and export enterprises, today
issues a business and trading update for the 12 months ended 31 December 2007,
ahead of the close period preceding the publication of the Company's Preliminary
Results, planned for April 2008.

Operating results

2007 has been an important year for the Company as we continued to grow the
business beyond our home province of Jiangsu, develop new products, attract new
customers and progress the roll out of the SAT contract. While revenue continues
to grow in all business segments; the previously announced delay in the SAT
contract has meant that revenue growth is less than we had anticipated. Net
profits continue to grow and at 31 December 2007 the Group (being Sinosoft and
its subsidiaries) had approximately $18 million of cash on deposit.

Significant developments

During the period Sinosoft opened its new office in Beijing and this has already
been of significant value to the Company with the winning of a substantial
outsourcing contract with United Wise Development Limited, a textile machinery
business based in Hong Kong. This work began in November 2007 and will be
completed within Q1 2008 with revenues recognised in both periods. We are
hopeful that this is a stepping stone to increasing our business within Hong
Kong.

The roll out of our export tax review software pursuant to our contract with the
State Authority of Taxation ('SAT') has been progressing, albeit at a slower
pace than we had hoped. Installation took place in Anhui in the first half of
2007 and commenced in Zhejiang from October. Following the completion of product
testing, we have been co-operating with these provinces and making changes to
our product to meet their new and in some cases unexpected requirements. The
Company has faced issues with differing interfaces across the provinces and is
currently working to resolve these. Once these issues are resolved, Sinosoft
will continue the roll-out to other provinces.

An agreement was recently signed between China and the US (the "Agreement")
settling the trade disputes between the two countries. The background of the
Agreement is that on 2 February 2007, the US government filed a complaint with
the WTO against China's domestic trading subsidies and in particular the use of
income tax refunds. It is our understanding that China has now agreed to
eliminate some of these income tax refunds. However, it is also our
understanding that the Agreement only relates to 12 specific industries and
relates to income tax rather than the value added tax refunds which Sinosoft's
export tax software is focussed on. Whilst we will continue to monitor the
situation, at this stage the Company is confident that the Agreement has no
direct effect on our business.

It is anticipated that the Preliminary Results for the year ended 31 December
2007 will be published in April 2008, following the completion of the statutory
audit and a maiden dividend distribution will be declared.

[apetley] 15/1/2008 12:34

Anyone heard anything about the supposed trading update that was supposed to be issued at the end of/beginning of the year?

[asp1] 11/1/2008 10:20

Moving up - polar should sell a few more.....

[igoe104] 11/1/2008 09:28

ID/smart card growth is on the rise. port security usa, government cards usa, national id cards worldwide, (igp )should gain from this.

SFT is one of them companies that could welll be more than £3 share in a few years, lots of growth in there section, as we know.

[drewz] 10/1/2008 13:30

There's precious little scope for 'growth' around outside commodities, energy, precious metals at the moment. Utilities and stable cash flow are attracting more interest.

Perhaps companies like SFT who have assured government contract work (assuming that to still be the case) are in one of the few areas of growth in the tech arena in a time of economic slow down.

[explorer88] 10/1/2008 13:21

hi drewz - in a bull market i'm happy committing to companies with the prospect of good earnings in 1-2 years time; in a bear market (like now) i prefer to preserve cash and invest in either prospective takeover situations or undervalued growth companies which offer good earnings now.

[drewz] 10/1/2008 12:54

explorer88,

H1 turnover £1.8m. MCap £20m. Cheap?


That's very poor analysis as I'm sure you well realise and I'm sure is deliberate on your part.

You give no regard to forward looking revenue even though that is almost entirely what SFT is about and make no appreciation of the very high margins.

You seem intent on running this company down for some reason by selective negative commentary.

At all events, I expect the numbers will do the talking this year and that is all that matters.

[dalrigh] 10/1/2008 12:38

Institutional sales people calling offering at 14p . They presumably were the recent buyers at 11p.

[philjeans] 10/1/2008 11:07

But with massive margins!

Put it this way - I'm a buyer now; I was a seller at 22p.

[explorer88] 10/1/2008 09:54

H1 turnover £1.8m. MCap £20m. Cheap?

There are cheaper growth opportunities (who also have good cash positions) available if one wants to commit cash in the current market, imo.

[philjeans] 10/1/2008 09:37

explorer; I think you'll find Polar need the cash more than SFT!

Cash is King is very true in a credit crunch and I'm very relived to see SFT has NCA of about £12M IN ITS VERY TIDY BALANCE SHEET , WITH NO DEBT!

Very cheap for a profitable, liquid and fast expanding Chinese IT business.

[igoe104] 10/1/2008 09:35

This might help nick grant.


Dear Paul



Thanks for your interest.

It has been frustrating to witness our recent share price performance but the management remain confident that the results of 2007 remain in line with our expectations and that this will herald a turnaround in our current position.

With regard to the tax law, the Company will be releasing an announcement soon to explain how it affects our business.



Kind Regards,
Alan




----------------------------
Liu Jinzhou(Alan)
Investment Director
Sinosoft Technology Plc.



Tel:(+86) (0)25 8481 6867
Fax:(+86) (0)25 8482 1727
Email: [e-mail]
[e-mail]

[explorer88] 10/1/2008 09:03

pj - there's the first RNS. Polar sold 1.6 million shares (hold a further 10.8 million, so we could see further significant sales)

still seems overvalued to me bearing in mind actual fundamentals, roll-out issues, and wider bear market (cash is king) - but, what do i know?

best of luck if you're holding for good news and a more bullish investing environment.

[igoe104] 10/1/2008 08:48

YES hopefully soon.
I,ve been told everything is in good order,and a trading statement soon will comfirm it, and put some life back into this share.

[arthurly] 10/1/2008 08:30

Trading update near future. Same source as igoe. That's all I know.