By Phil Boeyen, ShareChat Business News Editor
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Thursday 31st January 2002 |
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The company says that recent media comments have indicated that it has recently confirmed its expectation of meeting prospectus forecasts for 2002.
However following a meeting on Wednesday the board says it wants to make clear that while it is possible the company will meet prospectus forecasts, the timing of several large contracts will have a significant impact on reported results - either positively or negatively.
"At this stage it is too difficult to predict whether these contracts will be signed before or after March 31," says CEO Paul Weatherly
Mr Weatherly is reminding the market that revenue is only recorded once signed contracts are in place and that the costs relating to securing these contracts are recognised as they are incurred.
"As we said at the AGM, reported results, both turnover and profit, will be very dependent on timing of some large contracts. We are very confident of securing these contracts, but timing could be an issue. Results could easily be plus or minus more than $1 million.
"While our business providing software to private dentists in existing markets is fairly mature and fairly predictable, the Enterprise business is in "start-up mode" and as such is much less predictable."
Mr Weatherley says the company is currently working on proposals with several national health providers, along with a number of university dental schools, but the value and certainty have not been finalised.
SOE was one of the star performers on the NZSE last year, improving from 95 cents at the start of 2001 to end the year at $2.77.
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