I scanned the 10Q briefly and this company revenues have been stagnant with increased costs from the merger. The numbers indicate Acunetx is much more speculative and the new divisions need to start generating revenue because there is little cash to deal with any additional slow time. Also, the high amount of share dilution decreases the ability to generate measurable net income without huge growth in revenue and margins. The only encouraging thing I saw was the following statements:
Sales prospects for the balance of 2006 continue to appear strong, as we operate under a new contract with our current distributor and introduce new and refreshed products through new channels and sales partners. We also expect that
sales of our HawkEye product to the law enforcement community will begin to be reflected beginning in the third quarter this year. In early April we announced that our VNG products have been approved by the U. S. Government Services Administration to be listed on the Federal Supply Schedule, which permits access to all military and VA hospitals around the world. We plan to continue to use trade shows, print and electronic media, industry experts, and distributors to carry our message to our expanding base of customers and support organizations
Acunetx has a long way to go and I am thankful I have very little exposure to this speculative company. Hopefully at some point down the road they can post growth in sales and make this a viable investment again.
Mat
AI
