RE: Directors Talk Interviews .........18 Jan 2022 16:56
Hi ITT. Like you I am quite bemused. One thought occurs having read Heather's input.
" We've continued to have to mitigate against the continued component shortages and we have to order, in many cases, we have to order months in advance of the requirements, due to the lead times. In certain cases we are having to source components from alternative suppliers and then the disadvantage of this, is that we have to pay up-front, rather than having 30 to 60 days payment terms."
My gut feeling, and it's just that. Alternative suppliers will of course more expensive (supply and demand and no loyalty to CC) and as Heather has said require up front payment. Perhaps a further cash call similar to the last one? Just above current share price which CC will try and sell as positive, disregarding the recent highs. Perhaps they didn't think they could get a raise away above the recent highs which would be seen as negative?
From the 3rd June 2021 RNS .
"Despite seeing a worldwide shortage of semiconductors, CyanConnode has taken steps to mitigate such shortages by purchasing components from alternative suppliers. However, in some cases it has become necessary to make advance payments to secure the supply of semiconductors used in the module manufacturing process."
I was making the assumption the cash raised was to fund those purchases,it clearly says CC have "taken steps to mitigate such shortages by purchasing components from alternative suppliers" if that was not the case any new fund raising would be for future purchases to fulfil new orders.
Maybe I'm just overthinking things, I think the next RNS will be very interesting one way or the other.