Toumaz Share Discussion Threads

[a2584728] 27/9/2016 12:02

I have added some more

[twatcher] 27/9/2016 11:58

mind you, nice to mention a very successful product in your report, even if you aren't in it !

[nod] 27/9/2016 11:37

So, H1 EBITDA was near breakeven with Sensium Healthcare pilots ticking along throughout all of H1 and with a fall in revenues from FS compared with last year.Now we are informed that H2 will not be much better than H1 even with the sale of Sensium falling in H2 and FS development costs greatly reduced.I'm more than a little confused.

[the drewster] 27/9/2016 11:24

AGM 23 May 2014
AS re-affirmed the 3 key expectations:
1 To be cashflow positive in 2015
2 to grow revenues 5 times by 2017
3 to improve margins

April 2015 (results to 31 Dec 2014)
"In the next two years, we expect to see a significant uplift in revenues. The Group is nearing the end of a period of significant R&D investment and therefore expects to deliver positive cash flow in the first half of 2016."

AGM 28 May 2015
Cashflow positive has slipped from H2 15 (no shock) to H1 16

September 2015 (results to June 2015)
At the end of June 2015, the Group had GBP5.5m in cash. Cash burn is seasonally significantly higher in the first half of the year than the second half. The Board has implemented an overhead reduction plan and R&D spend has peaked.
The Group expects to be able to fund its operations to the point of cash generation, without recourse to a further equity raise as a result of the review into the Sensium Healthcare business, the continued good performance in Digital Audio and the prospective availability of a modest debt facility.

March 2016 (results to Dec 2015)
"We expect the Group to be cash flow break-even by the middle of 2016."

AGM 17 May 2016
Re-confirmed expected to be cashflow positive mid-2016

September 16 (results to June 2016)
Continuing operations moving towards break-even; expected to be EBITDA and trading cash flow positive in H2 2016

Cash raised in AS's tenure:
285.6m @ 10.25 in July 12 (Frontier Acq - though some more were subsequently issued in relation to the deal)
442.5m @ 4p

So £47m.

Market cap when he took over ... £81m
Market cap at 2.75p … 46.75m

All too often CEOs point to increased market cap under their stewardship, but we haven't got that nugget, indeed, the company is worth less than the cash raised under his leadership.

[sheep_herder] 27/9/2016 11:15

A little search regarding the Google Cast products shows this:



If they're turning into a pure software house, just integrating other people's ICs into a packaged product, then anyone can do that and the market is quite cut throat with tough margin pressure. Are they really not offering anything unique or something that has customer stickiness?

[twatcher] 27/9/2016 11:05

Wasn't TMZ supposed to DEFINITELY be cashflow positive at this stage. (having already push it back several times previously)

1) "The Group benefitted from changes in exchange rates as Frontier's revenues are predominantly in US dollars."

2) "Proceeds from the sale (GBP1.0 million on completion and a further GBP0.3 million on 31 December 2016)"

So two lines of income that would not have been dialed into the forcasts, and also disposal of a loss making unit, but what we are getting now is:-

"The Board expects the Group to be close to break-even on a continuing basis for the current financial year as a whole."

Which doesn't sound like they are guaranteeing breakeven even over the whole year ?

Also although they mention the "echo", are they saying they are in the echo, if so where is their IP ? ifixit torn it down and all the chips are identified, mostly TI or Qualcomm.

(original echo)
(echo bat)

Also I agree with sheep_herder, if there is no chip R&D for the forseeable future, what are they doing ?

[trek3] 27/9/2016 10:59

Chris Toumaz must be so disappointed at how his little
company has turned out, how much can be attributed to
Sethill, that`s the question?

[sheep_herder] 27/9/2016 10:27

Not a holder but looking in after the results. If these have sold the medical side and aren't developing silicon any more, aren't they just a systems integrator now? What's the added value they offer? Thanks.

[sweenoid] 27/9/2016 09:28

it seems to me developments in our area of business in the near-mid- even long term will be purely software driven, the investment there is very welcome.R+D spend is necessary but should be tightly focused( look what happened with Sensium!)

The market continually calls for advancement , but in our arena this will be all about software innovation for some time to come

S

[chillpill] 27/9/2016 09:12

AS is not known for making charismatic statements!

[mark4231] 27/9/2016 09:07

R&D money is still being spent on software development. Although, I too am surprised at no planned further silicon development.

Statement is fine, no nasty surprises, but it would have been nice if it had sounded more excited!

[supernumerary] 27/9/2016 09:01

Changing the name, consolidating the shares, but not moving out of the Caymans...

I thought this was a bit weird:

'R&D expenditure reduced to GBP2.8 million (H1 2015: GBP4.7 million) - no further silicon development planned in foreseeable future'

What's £2.8M being spent on if there's no new silicon to come? And why isn't there any new silicon - how do they stay at the Frontier if they don't do R&D?

[chillpill] 27/9/2016 08:55

If I were then I would have left the consolidation six months but there must be a reason they are doing it now.

[the drewster] 27/9/2016 08:51

PR machine batteries must have run dry while preparing that RNS.
Massively overpaid board and seemingly missed the latest cashflow positive projection (again).
Hugely disappointed to be frank.

[slicethepie] 27/9/2016 08:37

Would have been nice to see some reduction in CEO and Fd in salaries given now a smaller less complicated business....ha her

[rollthedice] 27/9/2016 08:34

Last consolidation I bailed prior to was AVO ~ got out before 25:1 consolidation at £1.81 equivalent at a small loss, now £1.125 midprice. As soon as I see the word 'consolidation' now I'm heading for the door!

[adventurous] 27/9/2016 08:27

I would not be surprised to see 80p a share on 1st December.

[rollthedice] 27/9/2016 08:20

I'll rebuy once dust has cleared on 40:1 consolidation ~ all the consolidations I've witnessed have led to a sharp post consolidation share price fall so will sit on the sidelines for that. H2 hopefully will be cash positive so that's encouraging.

[chillpill] 27/9/2016 08:16

When they have revenue and profits to base a valuation it doesn't make much difference.
You value a share on market cap/ enterprise value not a share price.

[someuwin] 27/9/2016 08:09

Share consolidations are always bad news.

[chillpill] 27/9/2016 08:03

I think there results were about clearing the decks for the future. I Minuet excitement should only just about to start.

[spekky] 27/9/2016 07:58

Disappointingly predictable......surely a sweetener is due....Harman was supposed to be the first in a flurry of new announcements.......wasn't it?

[sweenoid] 27/9/2016 07:49

When the highlight of an earnings release is a change in name ( welcome and called for) one has to think long and hard.

Share consolidation is obviously a good idea

I found the whole report a little......subdued, saying as little about the future as possible. This is far from a road crash report but it also isn't the ray of sunshine I was after. I therefore like to think AS is being very conservative, I hope he is chirpier at the presentation. One great relief-they do have enough cash :-)

S

[chillpill] 27/9/2016 07:48

First time they have officially talked about Amazon Echo. Big tick.