Member Info for skid35

IMHO I think they have to release an RNS tomorrow morning with more granularity on 2024 performance. What they provided in the skimpy update with no key KPIs really doesnt provide a platform to ask questions about tomorrow.

From a financial perspective I really wonder as well - I dont think DL has drawn his salary, they will have factored the year end royalty invoices but I cant see how they can pay the final TSP

Always find it funny that they **** parts of proper words.

surprised they have set this up. the year end update was sp**** on factual information which a standard saas company would provide as a matter of course. but good they are prepared to present and open themselves up for questions.

Must say I am surprised the market hasn't responded to the deal with a larger rerate. With kmks history I think I waiting for formal accounts with the chairman's and ceos signature.

Issues could include massive write downs of ridiculous inventory and debt levels which dwarf income, and intangibles. Although non cash these show how badly the company has been operationally managed.

I think memories of the Chinese write off of more than a year's income, and the promise (parroted by ST) that these would be reversed swiftly still in mind.

All the buffoons who stated the market cap at £300k might be correct shortly.

Perhaps they could start on Oryx or North Atlantic and get their own house in order first ?

Value, lets run through.

- You cannot take the "cash" as asset backing to 30-40% of the market cap, the whole balance sheet needs to be assessed. Otherwise they might as well go and get a £10m loan and have that as cash, which in a SaaS company with prepayments is effectively what it is.

- The growing top line in 2024 is from 2023 not 2024 contracts, as the whole year from deals in Q4 2023 have a full years recognition. What is more important is ARR and retention stats - ARR growth is low-mid single digits in 2024 compared to well into double digits in 2024.

- If you read between the lines pipeline conversion in 2024 was extremely poor / non existent. The same conversion rate in 2025 would be a disaster with the increase in sales opex giving a reducing cost of acquisition.

- Actually read what I have said on director buys. Of more importance is he knowingly signed an employment contract with options where they can only be exercised with a 350% increase.

I believe the share price is cheap based on the new CEO executing, and backing this with his own cash.

Just looking at Ensilica (probably the nearest equivalent on London markets) RNSs for the last six months for contract awards.

3 x Sept, 2 x Oct, 1 x Nov, Dec, Feb - an not for $200k.

Value, no its not normal business practice to state a "cash" figure which includes an unknown % of cash yet to be received. Companies shouldnt just make up KPIs if their standard industry KPIs are poor.

Even if the cash had been received the net / gross evaluation would be required as it is customer prepayments.

The shares arent cheap if 2025 is as poor as the "knock it out the park" 2024.

Hopefully they have a decent pipeline, can execute on it and they will be cheap.

Mafs, you dont have a clue what your talking about.

If ENET has world leading tech, even if it was very application specific it would sell in the 10s of $millions.

Value.

Firstly it's not headline cash.

You shoudnt take "cash" into enterprise value if it is debt related, owed to customers.

Revenue growth in 24 is primarily from a year's worth of revenue from orders in h2 23, not anything they have done in 24.

They need arr growth from new contracts, which if I read between the lines was anemic last year. Hopefully the new CEO s confidence in backing himself with a decent wedge is promising at these very low levels.

Value - you need to be careful on the cash front.

1. Current cash plus debtors to be paid shortly (where neither is split out) is not a standard KPI, and for good reason as its not a good KPI. KPIs shouldnt be made up on the spot, its like losing 7-1 in a game of football and using the KPI based on the minute you scored your one goal

2. Cash receipts through the year, from the always end of year sales hockey stick, are not a great guide to cash through the year

3. The invoicing / cash receipts are then creditors

Great news on the buys, especially the CEO. We need the investor meet and views on '26 (and learnings from the "knock it out the park" 25 to see where they are going rather than stagnating.

I'll just correct everything you have said

No ENET doesnt have a contract with the US government. The Tier 1 contracts it does have are heavily front weighted on development and very little tail on royalties, so not really "ongoing". US defence funding is reducing not increasing.

Markets clearly see an offset between the (mostly) one time gain on the Siemens deal selling future income streams.

Operationally KMK is still a complete and absolute mess and improvements havent been made in the last 2 years - simply ridiculous stock and debtor levels where the CFO may use the benefit of the Seimens deal to clear the decks, the intangibles will also need to reassessed as the forward earnings have changed.

If anyone can point to a listed company anywhere near the debtor days / stock turnover of KMK ?

Judging by the length of time Silverlight has been on the board he has lost c 90% of his stake.

The "it will come" argument is frankly stupid. Firstly even if it does come when will it come and what further dilution and price drops will happen. Second - will it come ?, the RNS and updates this time last year were further Tarana orders h224, an outright lie, and the millions from an ASIC deal in 2024, an outright lie.

Mickey,

You also need to understand what a value play is. These are usually boring companies with established markets / revenue / profit and a decent balance sheet which are on a low PE ratio.

LATM, as a % of Worldwide TAM for IT, is not that large.

Corero do seem to have a very targeted customer approach though with the use of key partners going the grunt work of sales.

Share price a bit up and down like a yo-yo, hopefully the price paid by the ceo / cfo set a medium term price floor.

Mickey. Probably best look at US defence stocks in the past few weeks. You don't complete a defence order in a couple of days even if defence spending increases. And again what is the market cap?

Jim Bob again, all the maturity of a two year old.