UnifiedOnline Inc fka UOIP

[Sazo233]

Although revenues were not as impressive for the 3rd qtr as some have expected them to be, I don't understand the "dooms day" logic of some investors here.

There was absolutely nothing in their financial statements that would indicate a sell off scenario unfolding this week.

On the contrary, looking at their balance sheet, and given that this time of year can be considered slow season, I see a company that is positioning themselves for growth.

*Company made very considerable cuts in expenses

General Admin Expense was cut by 56%
Sales/ Marketing was cut by 70%

General and administrative 495,963 1,130,005
Sales and marketing 123,955 404,443

The only expense not cut was R&D, and co. provided a direct result by expanding product line and making their offerings more efficient and appealing for both mid size businesses and enterprise clients

*They maintained their margins at over 45%

*They have not been able to increase revenues in 3Q, (but anyone following the company knew of this in advance judging by the amount of contracts they announced up until end of June) but at the same time their accounts receivables did go up compared to last year

Accounts receivable, net 1,777,160 1,466,483

and most important NET LOSS IS SMALLER THAN AT ANY TIME BEFORE !!!

Net loss $ (698,269) $ (1,423,743) $ (2,588,332) $(4,771,693)

Loss from operations has been decreased by more than 50%

Loss from operations (593,616) (1,276,503) (2,285,424) (4,349,497)

It's a no brainer for anyone familiar with balance sheets that this company is indeed in good shape and once the merger is consummated will become profitable within the same quarter

but as we know when traders are involved, negative sentiments are always dissipated. Traders and investors dont always seem to have same interests in mind. w.e it is im sure investors will hold down support in case traders start running tomorrow... JMHO