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Servision - now tell us about your deal with the Brazilians - another pre-placing LIE?

By Tom Winnifrith, The Sheriff of AIM

6 February 2016 09:55

More:

We have already demonstrated that not only is Servision (SEV) teetering on the brink of insolvency (HERE), has a ludicrously aggressive revenue recognition policy (HERE) but that also it announces deals as pre-placing ramps then patently does not deliver on them HERE & HERE. Now lets look at a pre-placing ramp from Brazil from April 2015. This is a shocker.

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Comments

Steve

6 February 2016, 12:02

There are two potential explainations for this…

1. The $250k was treated as a pre-payment and the delivery had not been made 30th June and so it had not been booked to revenue.

2. Sectrans is actually based in the US so while the order was for sectrans to deploy in Brazil, the revenue has been booked as North America – revenues in North America were $383k so there is room for the initial $250k in that.
Tom Winnifrith

6 February 2016, 12:14

Steve

1 Interims say units were supplied in H1 so it cant be that
2. Contract is with Brazilian sub so v much doubt this washes either. If it does then that makes the claims SEV made about its big US deal even more ludicrous does it not?
http://www.shareprophets.com/views/18242/servision-us-deal-i-dont-believe-you-becuase-your-last-us-deal-rns-was-all-bollocks

Think SEV has an awful lot of questions to answer…next stop Nigeria

t
Steve

6 February 2016, 13:07

Tom – yes true the interims do say they have been supplied. I still think its possible that they were either still in transit, on the dock in Brazil or undergoing final verification by the end user before the invoice had been accepted so the revenue had not been booked in H1 but technically they had been supplied.

Don’t get me wrong though – I’m not a holder or potential holder – the historical bad debt situation is more than enough to put me off. I just find it hard to believe the RNS was an outright lie – although maybe I’m being naive!
Tom Winnifrith

6 February 2016, 13:09

Steve

In which case they have not been supplied to the interims is a lie. After ALL the evidence supplied on numerous “contracts” surely the simpliest explanation is that these folks just lie to get placings away

t