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Article that keeps getting deleted

  1. chrisbiris

    695 Posts.

    Here is the article again. Who keeps deleting it!!!! It's a genuine article. Here's the link !!

    Advantel takes a cash course
    Geoff Elliott
    JULY 05, 2002

    EMBATTLED mining company turned junior phone company Advantage Telecommunications is struggling to raise new funds despite boasting huge revenue growth numbers yesterday.

    While the company said it posted record revenue for the last quarter, a spokesman for the company refused to reveal the company's present cash-flow position.
    The telecommunications and technology industry has been tarnished by the difference in reported revenue numbers compared with actual cash amounts coming through the door. This has often led to cash-flow problems despite what appear to be big revenue numbers.

    Advantel said the company was operating on 30-day terms, meaning the reported revenue numbers announced yesterday were higher than the cash it had received for the quarter.

    For the fourth quarter to June 30 Advantel said revenues, at $US1.5 million ($2.7 million), were 60 per cent higher on the same period last year.

    The spokesman declined to reveal outgoings but admitted the company was cash-flow negative. He guaranteed positive operating profits over the next three months.

    The company has about $4 million in cash in the bank but has told shareholders it will need to raise more money for working capital and capital expenditure.

    Despite the company's assurance that it is in a "strong financial position", analysts have questioned the viability of the Advantel model, which resells telecommunications capacity across Asia at a time prices are falling dramatically.

    Earlier this week the company announced a plan to buy UK prepaid phone card company FNT for $77 million, partly financed with Advantel shares at 42c.

    With the deal resting on the value of Advantel shares, analysts were sceptical about the timing of an article in a trade journal yesterday which said Telstra was mulling over a $9 million investment in Advantel.

    A well-placed Telstra insider described the prospect of Telstra investing in Advantel as "absolute crap".

    "We are bemused by it, there's no truth to it at all," he said.

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