NWT - Newsat Limited

The first company release for some time but as usual a bit "hedged" on any sort of profit guidance. We still need to wait for the half yearly figures, hope they are earlier than the March date alluded to in this release. SP is holding up though!!!


NEWSAT DELIVERS STRONG START TO CALENDAR
YEAR
NewSat Limited (ASX:NWT) announced today that the company has delivered
a strong start to the calendar year due to the Board’s strategies gaining
traction in the local and international satellite communications markets.
This is evidenced by a range of indicators which include record sales for the
month of January 07, traditionally a quiet period for trading.
Recent negotiations highlight the attention to cost control by the Board. Two
transactions with SES NewSkies, the synergistic business partner to NewSat’s
teleport operations, support this.
In the two transactions, the company has removed a fixed, pre-commitment of
$7 million. Both relate to restructure of capacity commitments in Australia and
the Middle East over the next five years, delivering a $3.5 million saving in
each of the two territories.
The Board is quick to point out that this reduction in pre-commitment for
bandwidth does not affect the strength of the company as it continues to
extend its market share domestically and globally.
In line with that pathway to continued growth, NewSat has restructured its
operations in the dynamic Middle East market, moving its base from Dubai to
Kuwait, with a new team and direction, including a more focused approach to
Central and South East Asia.
The decision to diversify its earth station activities, and offer clients flexible
solutions through a variety of satellites and technologies such as iDirect,
ViaSat and Vipersat, is proving successful. It has the added strategic benefit
that NewSat now has less reliance on any individual carrier.
The recent NSS 8 satellite launch failure has had no adverse impact on
NewSat’s operations. In fact, no contracts were contemplated or executed
with SES New Skies for its ill-fated NSS 8 service.
Recognising the on-going consolidation in the satellite industry, the company
identified that one of New Skies’ recent satellite acquisitions, NSS 11, already
in orbit, provided a better footprint fit for NewSat than NSS 8.
The NewSat strategy has been to take advantage of access to favourable
terms for NSS11 in order to add and migrate contracts to this satellite. In fact,
NewSat has this month launched another earth station at its Perth teleport
facility to handle this extra service.

NewSat anticipates building on this strong start to the year by further
expanding its asset base of earth stations to service larger clients in
preparation for long-term worldwide space contracts. The company expects to
be in a position to elaborate on the nature of these additional assets and
contracts in March.
ADRIAN BALLINTINE
Founder & Chief Executive Officer

Yes the 92 mill was actually a point made by a downer on another site. It is there.. SO yes that is positive ironically.
What do we make of todays ann.. Out of the blue.. Cleans up any doubt over the satellite destruction.
I would think 5 ann over & during half yearly.. But why couldnt the let us in on the sales figures.... ARe they that good or still ordinary...

A concern... No $$$$

bozot said:

Yes, 2 words manipulation and treeshaking

Come to mind..
Well 5 ann in 90 days and nothing yet , that was 24/1..
Remember reading Newsat nade 5 mill in last year b4 MUL takeover
Mention elsewhere that MUL had 92 mill in accum losses. Does that mean any profit will be tax free or tax reduced.. Any comments on this line of thought?

Just read it They claimed to have bought it for 13mill revenues 22mill profit after tax in 2004 = 5.4 mill aud

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I remember buying into MUL at 3.2 c and they had me mesmerised with the same spiel that is out now.

Yes, I agree, Wysiwyg.
At least they have products and a business plan but can they implement it successfully? History shows that the management has not been too successful at that previously.

Wysiwyg said:

I remember buying into MUL at 3.2 c and they had me mesmerised with the same spiel that is out now.

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I agree totally that the spiel is very guarded/hedged but it is very un MUL. It seemed that when MUL had nothing it came out with all this projections - the price rose - someone made a profit.

Now NWT seems to have something is not coming out with projections and price is staying steady. Big dumps are just mopped up. some is being turned over to be sold at 10% profit, but still being mopped up.

Lack of numbers is perplexing me. Why are they delaying releasing good results?

Try to put yourself in AB shoes -what benefit does AB get from doing this. Is it to do with his executive option package and is it based on a Weighted average cost over the last 3 months ? This could explain the reason for holding down the share price.

This is the only thing that I could do if I wanted to maximise my benefit if I was running the company .

But if the figures are bad ie same loss a last year, what would I do? this is a lot harder, but my only answer is to spin some more bull to keep share price up and issue more shares

so if the figures are bad, how do they gain or what benefit is it AB and the boys. goes back down to 0.6c or 0.5c. AB has not sold his shareholding as no notification or has not bought anymore.

Cant figure out

Hopefulone said:

Cant figure out

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Isn`t` everyone still using copper wire and fibre optics?

Wysiwyg said:

Isn`t` everyone still using copper and fibre optics?

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Not in remote situations ...

Hence Newsats target ... clients needing remote broadband services or redundancy backup, for essential services / business.

Wysiwyg said:

Isn`t` everyone still using copper wire and fibre optics?

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Sorry, not sure what you are trying to say.

Isnt wireless technology the way to go not 3G but 4G etc

Hopefulone said:

Sorry, not sure what you are trying to say.

Isnt wireless technology the way to go not 3G but 4G etc

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Sorry mate ...you`re right.

Yep looks like the future .... Re 4G and Newsat

From company ann
NewSat and Linowave partner to deliver new 4G WiFi comms

Monday, 20 November 2006
NewSat Limited (ASX:NWT), a leading satellite communications provider and Linowave, a global provider of next generation 4G wireless communications, announced the signing today in Dubai of a strategic partnership to deliver leading-edge WiFi and communication solutions to customers globally.
As Australia comes to grip with 3G technology, both Newsat and Linowave are charting the future of telecommunications in 4G technology.

4G technology is positioned to be the future standard of communication over wireless devices and provides users with on-demand, high quality video as well as audio connectivity. The advent of quality video and substantially enhanced manageability of bandwidth are considered by analysts to be key drivers in the move to the emerging 4G.

"Combining Linowave 4G technology with NewSat's broadband satellites services will bring a revolution to the telecommunication industry" said Linowave's VP Engineering, Mr Louay Sakka, from its Dubai head office.

"We can deliver bleeding edge technology such as OFDM (Orthogonal Frequency Division Multiplexing), and also OFDMA (Orthogonal Frequency Division Multiple Access) to better allocate network resources to multiple users with 4G over NewSat’s satellite access.

"Plus, the use of SDR (software-defined radio) receivers allows for better use of available bandwidth as well as making use of multiple channels simultaneously," he said.

"To provide these benefits to customers globally Linowave needed a strategic partner with its own technical capabilities, reliability, and well established support functions. These critieria pushed us to choose NewSat as our satellite internet partner of choice for our new 4G projects," Mr Sakka said.

Hopefulone said:

Lack of numbers is perplexing me. Why are they delaying releasing good results?

Try to put yourself in AB shoes -what benefit does AB get from doing this. Is it to do with his executive option package and is it based on a Weighted average cost over the last 3 months ? This could explain the reason for holding down the share price.

This is the only thing that I could do if I wanted to maximise my benefit if I was running the company .

But if the figures are bad ie same loss a last year, what would I do? this is a lot harder, but my only answer is to spin some more bull to keep share price up and issue more shares

so if the figures are bad, how do they gain or what benefit is it AB and the boys. goes back down to 0.6c or 0.5c. AB has not sold his shareholding as no notification or has not bought anymore.

Cant figure out

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You will know when the company has turned around. AB will issue himself a huge swag of options.

quotes, interesting 2 weeks we know!! The forecasts

The way I see it, any accountants in this room, any profit is going to be pure..ie no tax.. Cant they just claim the prior losses... gee 92 mill?
Saw this today..from another 2 weeks. Just passing on some info from a email received today.

'We will be releasing our results on completion of half year audit and in any event within two weeks.

The Board is reviewing when will be the appropriate time to issue forecasts and from that time "figures" will be provided. It has been impossible to forecast to date due to the acquiring and disposing of business units however with those activities complete and regular revenues being established, forecasting will become meaningful.

Prior to providing forecasts, The Board feels the provision of ad hoc figures is inappropriate.

Thank you for continued support of our Company

Kind regards

James Kellett
Chief Operating Officer
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Has to be good, anything b4 14/3 has to be good.
and

AB has stated publically since buying Newsat Networks that all divisions are now profitable/cash flow positive.

They have also announced that they sold Airworks for $7.5m, which had no carrying value in 2006 balance sheet and as such should be reflected as a full profit on sale.

It was also announced that Newsat Networks prior to purchase was already generating sales of $22.0m pa and net profit of some $3.0m.

So based on those both announcements interim results should disclose an interim profit of above $10.0m, ie after profit on sale of assets.

Like a lot of people I am sceptical this will be the case.

My beef is where is the ASX, why aren't they demanding that NWT give $ figures to these announcements - not that hard "we recorded sales of $ in January 2006 and have now experienced % growth to $ in Jan 2007".

This week I have invested in Ansearch of which AB is a majority shareholder - they are required provide monthly sales and cashfow reports
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Very hopeful I say, but...
I wonder if this has anything to do yesterday's announcement re: expanding earth station assets and new worldwide contracts to be detailed in March


From the Newswire: Thursday, February 15, 2007 - The United States military will build a new spy base at Geraldton in Western Australia. Defence Minister Brendan Nelson has agreed to host a ground station for a new US military satellite communications system. The plans for the base come after three years of covert negotiations between Washington and Canberra. The new US base will be built at the existing Australian defence facility at Geraldton and will be used by the Americans to monitor regions like the Middle East. It would be similar to the Pine Gap joint military facility in the Northern Territory.

Dr Nelson says the details of the agreement will be finalised soon. He said the Government has full knowledge of the functions and purpose of the base. He said negotiations began in 2003 and were continuing and would be made public once the details were finalised. More ground stations could be built at other locations in Australia, Dr Nelson said. The new US communications base will be the first since the controversial Pine Gap spy base began operating in the Northern Territory over 20 years ago. The base will be a key component of a system carrying orders and intelligence to US and allied troops in the field.
-------------------------

All getting very interesting.


2 weeks

Re: quotes, interesting 2 weeks we know!! The forecasts

bozot said:

The Board is reviewing when will be the appropriate time to issue forecasts and from that time "figures" will be provided. It has been impossible to forecast to date due to the acquiring and disposing of business units however with those activities complete and regular revenues being established, forecasting will become meaningful.

Prior to providing forecasts, The Board feels the provision of ad hoc figures is inappropriate.

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Any company the size of MUL sorry NWT can easily put together a forecast, its not a complicated business a little office somewhere in the middle east and Melbourne.
Give me a couple hours with their sales manager and their main finance man and we could have a forecast. Could have done it 5 weeks ago.
Christ sakes this is not BHP.
Any responsible company owes it to their shareholders to disclose any profit downturn or numbers they feel they will not achieve that they previously have forecasted/budgeted.
Gross profit less expenses = EBIT its still the same isn't it?
So they don't know their sales, cant work out their cost, have no idea of expenses.
I thought they previously announced sales growth %'s or was that some ad hoc/pie in the sky sales growth.
ALL SOUNDS A BIT IFFY TO ME

Re: all about executive options

brerwallabi said:

ALL SOUNDS A BIT IFFY TO ME

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I agree, sounds iffy but again putting myself in their shoes, the maximum I can get out of the company, without physical stealing, is to using executive option scheme.

If the company figures are unchanged from 30 June 2006 ie big loss then I would disclose as soon as possible to get share price down and the option price very low.

Alternatively if the figures are good I would not disclose anything so that options have a low price.

I have an incling that it is the latter ie good figures and options are going to be issed shortly.

Re: all about executive options

Hopefulone said:

I agree, sounds iffy but again putting myself in their shoes, the maximum I can get out of the company, without physical stealing, is to using executive option scheme.

If the company figures are unchanged from 30 June 2006 ie big loss then I would disclose as soon as possible to get share price down and the option price very low.

Alternatively if the figures are good I would not disclose anything so that options have a low price.

I have an incling that it is the latter ie good figures and options are going to be issed shortly.

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Sounds even more IFFY, surely directors do not do things like you suggest.
I say that in jest.
The day that volume spikes very quickly and it starts to move I might jump in for a mil or two and a quick profit but something that I would not like to hold overnight.

Re: all about executive options

brerwallabi said:

Sounds even more IFFY, surely directors do not do things like you suggest.
I say that in jest.
The day that volume spikes very quickly and it starts to move I might jump in for a mil or two and a quick profit but something that I would not like to hold overnight.

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Not sure whether you are serious or not. If was a director, why not make the most of it?

If it spikes, it will only spike off release of $$$ info. If $$$ info is real ie a profit and projections are even more, doing the day thing will leave you feeling a little short change. Once $$$ are out it will takeoff. There are a lot of people who have been following waiting for a sign - recent announcements have not done anything. Any other stock and it would have moved significantly. Would love to do the day thing but the risk for me is that I sell on a spike only to see it climb a mountain - all this waiting is for the big pay off - thats why I am the hopefulone.

Hopefulone
Well if it climbs a mountain I would be very surprised, it seems to have fallen down a crevasse.

Right now its the best bull market I have known and today should be another wonderful profit day.

Those who have been waiting for MUL/NWT to come good have been waiting for a very long time and I have listened to the crap from this company for a long time too and no results just more shares. I have traded it numerous times on spikes before so it is one I have followed.

Then again Hopefulone you might have been seduced in below 1cps so I hope you make money.

The 81 million issue by the company seems to have been well received by investors, not!!!

hmmmm
New Dog / Old Trick

Going .... Going..... Gone...?

is it...?