Friday, 25 January 2008

ANH 2Q08 Quarterly Report

Ansearch released their 2Q08 Cashflow report today. Cashflow from operations mproved marginally to -155k from -177k in 1Q08. Cash Receipts from customers came in at $4.22m down from $4.64m in 1Q08.

Cash receipts, unlike sales can be affected by the timing of those receipts. Also, the company has noted previously that online advertising is usually softer around December and January.

That said, it is still a cause for concern to see cash receipts drop, albeit slightly. The other cause for concern is that the company didn't issue a statment on their sales performance. With every other Quarterly report in 2007, the company released a sales report.

From the above I can only conclude that the company did not post an increase in sales over the previous quarter, that would be the first time in two years. Given the huge growth in revenues they were bound to slow, but a decline, if that's what it was, is a little disappointing.

In addition the 2Q08 cashflow report shows the company did not pay any tax, they did pay a small amount of tax in the 1st quarter in which they announced a small pre-tax profit of $0.74m.

So the company posted a small decline in cash receipts, probably a commensurate decline in sales and perhaps a small loss as opposed ot the small profit I was expecting for the second quarter. I will endeavour to talk to the company on Tuesday. However at this stage it looks like my holding of ANH will be short lived.