Here's what the annual report has to say about it:

Revenue recognition continuing operations
Turnover is recognised for any element of a sale when all of the basic criteria are met for that element. The four basic criteria for recognising software licence revenue are: that persuasive evidence for the arrangement exists, delivery has occurred, our fee is fixed or determinable and the collection of the revenue is probable. Maintenance revenue is recognised rateably over the period of the contract, and consulting revenue is recognised on the basis of work performed and contract milestones.

So, clear as mud there then! appears to be satisfiedopen to question - depends if "technology access" counts as delivery at signing, or when they implement; or whether any software has been handed overprobably satisfied,open to question - contract signed, but customer in C11.

ZZ - sorry but I am not certain about c11 conditions. I agree with your analysis although Pt 2 (delivery has occurred) is probably even more questionable than you suggest - surely it must assume minimum operability of the delivered software to the satisfaction of the customer (not just beta testing that would have occurred preJanuary announcement). Moreover, if the upfront payment includes an obligation to maintain operability and functionality of the software then it could easily constitute "maintenance revenue". I am in the dark, as is often the case with Tad.

zaxx - i would imagine they would have to recognise it over the period of the contract

Afternoon Dick
I see grussome one is boasting about how successful he is, all of a sudden he seems to have developed an inferiority complex since pjjw has been telling people he is about to buy.
Seems to be a lot of large chunks being picked up between 15.5 & 15.75.

yuff - i thought the sell off would be greater but seems to be holding firm

Cartesia was disappointing but as we are 3 months into H2 they must be confident of better trading there. If we assume even half a million profit - personally i would hope for 1m from that division - then the loss is down to 1.3m for H2 without any further ETI contribution - that would give us enough cash for 18 months so not worried on the funds front at all - not to mention we may possibly get more funds from the H/W sale next year

looks like it is up to ETI to bring it to the table at last!!!!!

Grossone has been filtered from his first appearance as a clear Ollie clone - from the copied posts I would imagine the bloke is a Jack Russell on speed - all bark and no bite.

I think i am trying to say that he is a tool

regards

the appropriately named dick!!

We may have them worried!!


July 01, 2004 08:30 AM US Eastern Timezone

Citrix Reorganizes Corporate Services and Product Development Organizations

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--July 1, 2004--Citrix Systems, Inc. (Nasdaq:CTXS), the global leader in access infrastructure solutions, today announced that it has reorganized its corporate services and product development organizations. The internal changes are designed to streamline back-office processes, increase cross-company collaboration across all functions, improve overall customer service and simplify the company's organization. The company also announced that Jeanne M. Moreno, senior vice president, corporate services and chief information officer, and Bob Kruger, senior vice president, product development and chief technology officer, have decided to leave the company. They will continue to support the company during a transition period.

Lots of big buys today, following more big buys on Friday, something starting to brew?

Do you think its an early rise tomorrow then?

M

ML
Not sure about tomorrow ML, but with all these large buys flying about it looks like something is getting ready to burst.

Todays Express


"Whispers of a tie-up with Microsoft and industry accreditation for its software lifted Tadpole Technologies 1/4p to 16p"

Not many more early mornings guys.
Thankfully!

M

New contract for Teldig - let's hope TAD get some royalties

07-05-2004 - CITY OF MADISON IMPLEMENTS TELDIG UTILITY & TELDIG MOBILE

Wisconsin's capital to use TelDig's technology to manage One Call tickets

TelDig Systems, leader of damage prevention solutions for buried infrastructure today announced that Wisconsin's capital, the city of Madison, decided to implement TelDig Utility and TelDig Mobile to manage their locate requests from the One Call.

TelDig's technology will help the city's officers to provide a better service by automating the dispatch of tickets and other processes such as screening and reporting. The city will also implement TelDig Mobile in the field to provide a paperless and more efficient handling of the locate tickets. TelDig's product currently integrates MapInfo's MapX, Microsoft's MapPoint, for usage of street and utility maps. TelDig is also integrating ESRI's MapObjects and will link to Microstation's Fieldview in the upcoming weeks. This will provide more flexibility to users that use different GIS environments.

The city of Madison follows other municipal and government agencies throughout the country that use TelDig's products. TelDig's customer base covers damage prevention one call centers, contract locators and utilities of all sizes. TelDig has been serving the damage prevention industry for 10 years.

Good stuff Dick.
ML
I see buys heavily outweighing sells for the third day running and the mm's still refuse to let the price run free.

"I see buys heavily outweighing sells for the third day running and the mm's still refuse to let the price run free."

;-)

you guys STILL really believe all that conspiracy sh*t then ;-)

you need to get out and about a bit more.

rjs
Perhaps you can explain why the price is level over the past 4 days with buys outweighing sells by more than 3 million.

ML
Good to see Iain isn't having much luck on iii.

RNS Number:5799A
Tadpole Technology PLC
07 July 2004


Tadpole Technology plc
July 07, 2004
Tadpole Technology plc
Acquisition of Stream Theory

Tadpole Technology today announces that it has signed a definitive agreement to
acquire Stream Theory, Inc., a California-based company that designs, develops,
and markets distribution platforms and technology for the centralised deployment
of management of application software over the Internet and across enterprise
networks, principally within the games market.

The acquisition is subject to approval by the shareholders of both companies and
supports Tadpole's vision to become the industry-standard for on-demand
streaming software. Through its Endeavors Technology subsidiary, Tadpole
currently addresses the enterprise market in the US and Europe; with Stream
Theory, it gains access and immediate revenues from the Japanese consumer games
markets, and a platform to penetrate other markets world-wide. The combined
entity will become an industry leader in the development of streaming solutions
for the enterprise and consumer games markets.

Stream Theory has signed an initial $9million exclusive distribution agreement
with a large Japanese broadband Internet provider; who will use Stream Theory's
server technology to distribute games and other software applications over its
broadband network.

Under the terms of the acquisition, Tadpole will buy the entire share capital of
Stream Theory for an initial consideration of $25 million in Tadpole shares at
the strike price of 15.75p. A further consideration will be payable in Tadpole
shares to Stream Theory's owners based on two times new revenues generated from
the Japanese broadband Internet provider, over the next two years.

Furthermore, if the shareholders ratify the agreement, the current CEO and
president of Stream Theory Inc, Mr. Steig Westerberg, will join the board of
Tadpole Technology plc. He will have the role of chief operating officer -
Streaming Technologies Americas and Japan and will report to Mr. Keith Bigsby,
chief executive officer of Tadpole's streaming division. Mr. Westerberg will
have an annual base salary of $275,000 and a commission of 5% on all revenue
from the Japanese broadband Internet provider. In addition, he will receive an
annual performance bonus of up to 90% of his base salary based upon performance
targets set by Tadpole's Remuneration Committee. Mr. Westerberg will also
receive private medical insurance and life assurance and the Board has agreed to
award Mr. Westerberg 4,000,000 options on Tadpole shares on completion of the
acquisition.

Stream Theory is an established instant software distribution solution that
delivers and manages software applications over the Internet and private
networks. Stream Theory's streaming software service was developed for game
publishers and developers, software e-tailers, software portals and application
service providers. Stream Theory streams software applications from its servers
to users' desktops when connected to a web site, corporate intranet or virtual
private network. Applications are delivered securely, and are not installed on a
user's hard drive.

Founded in 1996, Stream Theory is a privately-held company based in Santa Clara,
California. Its software is sold through distributors and software games
publishers. In the year to 31 March 2004, Stream Theory had revenue of
$1.6million with a net loss of $0.4million and the company had net liabilities
of $0.7 million. At 30 June 2004, Stream Theory employed a staff of 10
.
A circular containing further details of the proposed acquisition and convening
an Extraordinary General Meeting to seek the requisite approvals will be sent to
shareholders in due course.

Reasons for and benefits of the acquisition

As part of a strategic review of the streaming software market, Tadpole's Board
identified significant synergies between its Endeavors Technology subsidiary,
which targets the enterprise market, and Stream Theory's offerings for the
consumer games market.

Both Endeavors and Stream Theory develop and sell software that streams
applications on-demand over the network to individual PCs. In addition,
Endeavors has a distribution model for enterprise applications through managed
service providers and telcos in the US, whilst Stream Theory, with its recent
contract from the Japanese broadband Internet provider, has strong inroads into
the Japanese market.

Tadpole sees significant opportunity for the combined companies to expand the
streaming of enterprise software in Asia, initially with Japan, and to expand
games and consumer software streaming with telcos and ISPs (Internet Service
Providers) in the US and Europe.

Stream Theory's technology also complements Endeavors' technology. Stream Theory
holds a key "technology defining" patent whose methods will broaden the scope of
software piracy protection available from Endeavors' products. Stream Theory's
StreamFlow Architecture optimises the delivery of consumer and gaming
applications across lower bandwidth connections. Further, Stream Theory's
software player product, Stream Theory PlayerTM, enables customers to deliver
messages, advertisements, promotions and sponsorships to their end users prior
to the start of the software experience.

ends

Enquiries

Mike Brennan, Evolution Beeson Gregory - Tel 0207 488 4040
Hugh Paterson, Patcom Media - Tel 0207 987 4888



This information is provided by RNS
The company news service from the London Stock Exchange

END

looks exciting - never a dull moment with TAD

It's an interesting deal - not at all sure which way to take it yet. Like the additional exposure, and entry into Japan. Not too keen on the dilution, and very wary of that "... two times new revenues generated from the Japanese broadband Internet provider, over the next two years... " clause - if it does well, that could be an open-ended money pit.

Thinking aloud: Revenue from Japan = $9m. If they manage to grow that to say $10m next year & $12m the year after, then TAD gain $22m turnover, then have to pay out 5% commission on the whole lot = $1.1m, and twice the increase over 9m = 2 x ((10-9) + (12-9)) = $8m. Net gain in turnover is 22m - 1.1m - 8m = $12.9m over 2 years. That's a pretty tidy sum to Endeavours (current posted t/o about 100k pa). Not clears what the COS is, though.

If the sales shot up to say 12m/15m, they'd actually be worse off: 27m - 1.35 - 6 - 12 = 7.65m. They need to be pretty careful how fast that business grows over the next 2 years! Now, there's a new problem for TAD :-)

Still thinking aloud:
Scenario 1
Stream lost $400k on turnover of $1.6, so cost of that business is about $2m. Add in Tad's current loss (excluding any MCI/EDS/M$ effect) of about $6.5m then, if there is no improvement in current performance, and no cost savings from the merger:

Year 1
TAD = -$6.5m
Stream = -$400k

Turnover from Japan = $9m. COS = say 40% (including 5% commission) = $3.6m, so GP = $5.4m

Year Nett = 5.4m - 6.5m - 0.4m = -1.5m

Year 2
TAD = -$6.5m
Stream = -$400k

Turnover from Japan = $10m. COS = say 40% (including 5% commission) = $4.0m, so GP = $6.0m
Subtract double performance of $2m = $4m

Year Nett = 4 - 6.5 - 0.4 = -$2.9m

Yikes - that's not too good. Total loss over 2 years = $4.5m

Scenario 2 TAD finally manage to sell something, and save some of the cost of Stream. Japan sales increase to 10 then 12m

Year 1
TAD = -$4m
Stream = 0

turnover from Japan = $10m - 40% COS = $6m GP. Subtract $2m for Stream payment = $4m

Year Nett = $4m - $4m = 0 Break-even

Year 2
TAD = -$4m
Stream =0

turnover from Japen = $12m - 40% COS = 4.8 = 7.2m. Subtract $4m for Stream = $3.2m

Year Nett = $3.2m - $4m = -.8m

Overall - not that great, but much improved on now, and with "clean" revenue stream in year 3.

All pretty bloody imponderable though - very dependent on what the COS is, how much other revenue TAD make, Stream overheads, rate of increase in Japan, etc etc

zzaxx - there is an IC article today stating that gross margins are 100% and operating margins are 85%

if TAD use all income from the provider to pay the owner his 2 x revenue in years one and two then TAD are only left with the need to fund from cash/shares 1 x revenue - also bear in mind we get the $9m and have 4m in the bank

after that TAD get all the revenue and in any event get all revenues from other deals through stream

agree it will take time to see how successful this is but imho the more successful it is the better for TAD as the share price will increase in anticipation of the free cash flow post year 3 and reduce any amount of shares that have to be issued in years 1 and 2

someone also made the point that if a japanese tleco is paying this much then what are TAD likely to get out of MCI?

hate to be picky - but TAD will not lose $6.5m per year - you are forgetting that Cartesia will make substantial profits in H2