Investor Bull(etin)

After a difficult year, the CEO
sees a positive role
for the company
given the testing trading conditions.

At the outset of the third quarter
we were positive about revenue prospects
There was a healthy sales pipeline
Unrestricted growth
Visibility is good, becoming positive
and we felt confident that a positive number of
agreements would be signed
Given the positive testing trading conditions.

Contrary to expectations,
however
the market in September was characterised by caution
Inaction was not an option
with customers postponing,
delaying
or in some cases cancelling projects.

This mood became infectious which
Accentuated
for an industry already blighted with uncertainty
Blighted
accentuated the lack of confidence.

Hence
a different strategy was required.

In the wake of the third quarter results
Disappointing
we reviewed our revenue forecast.
We stated that the revenue outlook
for the final quarter
would be flat
Fiscal.
Positive.

Though we are working hard
to improve on this
Demand is disappointing
visibility continues to be poor.

Hence
to bring our cost revenue expectations structure in line
with reduced revenue structure expectations
we reluctantly announced
reluctantly
a 10 percent reduction in
headcount

This was an incredibly tough decision
Inaction is not an option
Demand is disappointing
Inaction was simply not an option
Had we embarked on the year without making these cuts
With unrestricted growth in mind
then our profitability would have been testing
Growth is simply not a healthy option
intense pressure
and possibly threatened the long-term survival of the company.