TSTC: What they say about WFDS is true, once they start selling to people outside the China Telecoms (Will happen this year as they roll out the 3 new WFDS products targeting other demographics). Note that this year, 99%+ of revenues came from the Big3 Telecoms and as such are using the same old slow-DSO system. Hopefully what we have heard about the telecoms starting to 'revamp' their payment system is true and happens before hell freezes over.
I agree that A/R is a huge issue for the company. I expect their collections to increase significantly by the middle of this year(By the time Q2 is reported), but if they have not I will definitely be worried. The A/R balance itself will not shrink while they keep growing, sadly. Perhaps with the launch of the non-BIG3-Telecom WFDS products we will see some improvement, at least that is the expectation.
This A/R problem definitely plays a big part on why we are trading at a P/E of 2.88, no doubt about it.
-Fernando
