PocketMail faces cash burn queries
- 05 February, 2001 15:28
Retailers may be wondering if PocketMail devices and service - which allow subscribers to receive e-mail from almost anywhere in the world - will remain on their shelves.
The mobile e-mail service company may have signed up more than a dozen of Australia's major IT retailers, but it is still spending far more than its revenue streams.
The ASX last week queried the cash-burn rate of the mobile e-mail service company, following its Q4 report. Revenue for the quarter was $468,000, yet the company posted negative operating cashflows of $853,000. Cash reserves stood at $821,000 at the end of December.
However the PocketMail Group maintains the company will become cashflow positive by the second half of this year, ahead of expectations, pointing out it still has access to $900,000 in loans. In response to the ASX query, the company has stated its cashflows will continue to decrease since initial outlays stemmed from the establishment and launch of the business. It also expects revenue streams to increase.
"As the establishment and launch of the business is behind us and subscriber revenues continue to grow, the company expects the net operating cash outflow to continue to decrease," it said in a statement to the ASX.
Last month, PocketMail announced it would acquire the worldwide business from Pocket.com.
"The company has the opportunity to now exploit the PocketMall technology and sell the PocketMail service on a global, rather than regional, basis," PocketMail said in the statement.