Clever Communications has generated positive operating cash flow for the first time in months following net losses two years running to the tune of almost $900,000.
The Melbourne-based Internet Service Provider (ISP) today reported an operating cash flow of $185,000 for the fiscal 2007 fourth quarter, even though the net operating cash flow for the half year ending 31 December 2007 was minus $438,000.
Following Clever Communications chairman, David Williams, announcing at the company’s annual general meeting in November 2007 that the company “has not lived up to its potential” and that “shareholder value has been eroded”, Clever has now taken a range of precautions to ensure it stays on deck financially.
After one-off costs relating to a business restructure including an expensive re-branding exercise that saw the company merge its fully-owned subsidiaries – Access Providers, Saise Telecom and Activ Australia – and change its name to Clever Communications Australia, the company is now looking positively to the future to regain lost money, according to Williams.
“The restructure of the business has been completed and has resulted in a reduction in headcount’ a reduction in the operating cost base of the business and the addition of experienced senior management,” said Williams in the notice.
Williams also said an “aggressive” sales and marketing program had been developed and implemented over the quarter-period to drive increased sales, while a focused program to penetrate the wholesale channel has also been launches and has been “received positively”.
“We continue to work closely with our key suppliers to improve pricing and terms and to assess opportunities to enter into commercial arrangements to enhance our service and product offerings to the marketplace, and to improve margins,” said Williams.