I am truly impressed. The London bullboarders are doing some great dd and they post with such eloquence.
The analysis is solid and I have to agree that it would seem that Synchronica's turnaround has upset the Myriad applecart. The latest release confirms that they secured a deal that by all rights should have gone to Myriad. Myriad ultimately may not have a choice in a do or die scenario. They will have to step up their bid in a large way or risk further marketshare erosion. Some of Myriad's largest shareholders are extremely wealthy and are more than capable of sourcing liquidity in the event an "all cash" offer becomes a necessary reality to ensure victory.
Myriad--By Myosotis--LSE Forum
"Just reading through Myriad H1's.......
.......Sync hae been slated for their trade and recievables.........they are nothing in comparison to Myriad........up to US$45m from $30m just a year previous although as identified, they did hold $16m cash........although much of this is offset by $43m in payables and combined liabilities of $65m.
The big dip in revenue has been down to the early loss of the Sagem contract. A massive blow, although they do try to deflect attention from this by the rhetoric surrounding a deployment with Telefonica. Reading the detail however, even this hasn't been plain sailing and comes with no guarantees. The mobile services division accounted for just $5.6m of H1 revenue.
To be honest, I look forward to visibility on Myriads H2/full year, as this will give us a key focus on just how much they are shrinking.
Myriad removed $23m of costs during 2010 and like Sync, have closed offices and migrated work to emerging economies. A further $3.7m in operational cost savings was achieved during H1 '11......but even this wasn't enough to shield from net losses of $4.6m.
To me, Myriad are a company who are looking scared and running out of ideas. They have cash for now, but if revenues continue to shrink and they continue to rack losses without further cost cutting, then this cash will run out quickly. A $60m H1 '10 to produce just $60k bottom line, is not a record to be proud of, followed by a full year result of $100m revenue with a bottom line loss of $35m becasue of restructuring costs.
Interestingly, Simon Wilkinsons' term as CEO comes to an end with the end of the 2011 financial year. Of course he will be up for re-election......but just the same, he could be up for replacement.
Does the plot thicken?"
The above is just my opinion, Govern yourself accordingly !
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