Telephonetics Share Discussion Threads

[zeel] 03/9/2007 11:21

lol - do your own research

[lbo] 03/9/2007 10:22

Says the man who works for Eckoh!

It seems we all know about who you are now and what your vested interest is. Eckoh must be worried!


oxfordrun - 31 Aug'07 - 22:06 - 4894 of 4895

lol indeed zeel please concentrate on your day job at eck!

[lbo] 03/9/2007 09:00

The basic software has been around for years but was never reliable enough and so was no taken up on a large scale by consumers. It seems that the software and the consumer market is now a lot more advanced and a viable target for companies like Telephonetics. Telephonetics has big plans IMHO.

"As announced in the recent trading update, the Company has refocused its
strategy to expand its customer base into a number of new market sectors, other
than health, local government and cinema. This will be through greater
investment in our direct sales team, indirect channel and business development
relationships and support functions. The Group also aims to drive-up the life
cycle value of its solutions by allowing customers to add on additional speech
applications to their existing platform, grow the capacity of their existing
solutions and add resilience to their existing Telephonetics solutions. Our new
packaging and pricing are designed to encourage customers to do so"

[mbaxter] 02/9/2007 18:16

LBO - relevance? Sounds like standard software that has been around for years.

[lbo] 02/9/2007 16:25

MSPs voice approval at software


Blazing a trail in the UK is the Scottish Parliament, which has offered all staff and MSPs the chance to dump their keyboards and install software which automatically converts speech into text, even allowing for accents and background noise. One member of the Parliament - Nationalist Alasdair Morgan - has already taken up the challenge with gusto and now dictates all his correspondence direct into his PC at Holyrood.

[lbo] 31/8/2007 15:14

I agree managment have overpromised and underperformed so far. Its about time they were held accountable to shareholders and replaced by someone who can deliver shareholder returns in the form of a rising share price. I personally think the business is interesting but the managment have a lot to answer for the fall in the share price since they listed this. I also agree that the market has lost confidence in management and without that their is no reason for this to remain a public company unless they plan to rapidly expand.

[zeel] 30/8/2007 21:59

"Telephonetics PLC posted a 58 pct fall in its
first-half underlying pretax profit"

"As anticipated, administrative expenses before intangible asset amortisation and
exceptional items have increased to #865,000 (2006: #542,000)"

"full year results remain
dependent on the timing of orders and implementation."

[lbo] 30/8/2007 18:41

Would you prefer they did not invest for the future? It is a technology company so you can take it for granted that they need to invest for the future. I think its very interesting that they managed to increase investment in sales, marketing and development from £0.4 million to £1.9 million in H1 and still manage to increase Cash levels by £259,000 to £3.3 million.

I also find it interesting that they had H1 sales of £4.8m and Gross profits of £2.847m. So when you take the £1.5m increase from the total operating costs of £3.542m that gives £2m operating costs (ex- the increased investment) and would mean the business made H1 EBITDA of £800k. So they could be easily making £1.5m EBITDA per annum on the current figures if they were not investing for future growth. This company as I have been saying all along could easily be worth 10x EBITDA or £15m and now only has an EV of £7m. Also they are still on course to meet Landsbanki estimates for this year.

[deanroberthunt] 30/8/2007 12:41

so they spent 2m on marketing......yeah right!!!!!! looks like they've got no intention of recording a decent profit or adhering to in-house Brokers guidance....

[zeel] 29/8/2007 12:21

I do hope so for their sakes - that new forest deal was worth about 30k a year I think.

Trouble is any new deal will take 3-6 months before any cash comes in.
Considering the massive overspend on the sales channel and the recent profits warning these could be less than half todays price before the confidence returns.

TPH will never get the city back on their side since letting their own house broker down on their guidance imho

looking grim

[lbo] 29/8/2007 10:21

Lets hope they get some contracts at the upcoming Callcentre Expo



and the Healthcare Computing conference

[lbo] 28/8/2007 14:08

Zeel I did not see you arguing with this guy on ECK? Applying a 3x sales valuation to TPH values them at approx £40m + £3m cash = 36p a share. Now I would not be as optimistic as that.


nickelmer - 23 Aug'07 - 15:58 - 4869 of 4873

Agreed, the directors have made it clear that they feel the co is under valued, and that a true figure would be circa 16p.

do some research on voice rec companies in the states and you will find deals struck at 3-5 times turnover, so for example at annual turnover of 6.3 million the voice rec business could value at 24 million (at 4 times) easily. with cash of 7.15p if voice rec was correctly valued into the price this would add a further 12p (24 million divided by 200 mill in issue) and show a price of circa 19p and even then that puts a ZERO valuation on CMs and client IVR

If Eck can grow speech to say 12 mill that should give a target share price of circa 30p on a 2/3 year view

[lbo] 24/8/2007 16:00

Telephonetics doubles revenues but halves profits



Telephonetics said that it had increased its investment in its sales, marketing and development teams and had diversified its revenue streams, and remained positive about the future of the firm.

"All indicators show that the outlook for the speech market remains positive and we believe that the Company is well positioned to benefit from the sector's future growth," said chairman Mike Neville.

[lbo] 24/8/2007 15:51

I see you have major issues with Neville aswell as the LSE. Perhaps you should put them in writing to Mckay or Burger and see what they think. I don't know the guy but you seem to have major concerns on his abilities. I wonder why they, as major shareholders, have faith in him and you don't? Do you know more about his abilites then the guys who co-founded and own the majority of the company he chairs? Whats your history with him?

[zeel] 24/8/2007 14:33

Has anyone got any sensible views on what happens next for TPH after this latest profits warning?

Is the writing on the wall or is there light at the end of the tunnel?

[zeel] 24/8/2007 14:28

for one I do not have 2 million shares but if I did they would be obliged to take them.

I might only get 3-4p a share in this market but never the less they would have to take them.

You can be bored as much as you like but you need to get FACTS right

and notice, I am not calling you my mate, stupid of implying that you are on drugs

[lbo] 24/8/2007 14:25

Are you on drugs Zeel? Why don't you ring one of the mms now and tell them they are obliged to take 2m shares again at 7.75p right now off you and see what happens. And please record the conversation as I have not had a good laugh in ages!

Clocktower, I am not making any comments on the LSE or its interest in regulating AIM. I am commenting on the hilarious idea that Zeel thinks the mms are obliged to take a share trade above the NMS. I am sure many of us wish he was a market maker.

[zeel] 24/8/2007 14:22

"Market maker

A Securities firm which is obliged to offer to buy and sell securities in which it is registered throughout the mandatory quote period."

Source LSE

As I said a MM is obliged to trade but only has to deal at the bid if it is quoted within the NMS

[lbo] 24/8/2007 14:19

Please mate. Talk to the LSE as I am getting bored with you.

Normal market size (NMS) is the minimum number of securities, as specified by the London Stock Exchange, for which a market maker is obliged to quote firm bid and offer prices



SEAQ (Stock Exchange Automated Quotation)
SEAQ is the London Stock Exchange's service for less liquid securities, and most AIM securities are traded on it. The service is based on two-way continuous quotes offered by competing market makers. The continuous two-way quote must be maintained at the 'normal' market trading size or greater, to ensure that at normal market size there is a buyer for every sell order and a seller for every buy order. There is no electronic execution in SEAQ stocks via the central market

[zeel] 24/8/2007 14:16

"Proponents of the official market making system claim market makers add to the liquidity and depth of the market by taking a short or long position for a time, thus assuming some risk, in return for hopefully making a small profit. On the LSE one can always buy and sell stock: each stock always has at least two market makers and they are obliged to deal."

[lbo] 24/8/2007 14:13

Oh please mate. I asked if you were stupid as your comments would lead many to believe you may be. I never called you anything. Why don't you just go and start that other thread?