Norwood Systems Limited (ASX: NOR), a virtual mobile communication provider, announced that its strategic partnership agreement with ECConnect which is into the business of providing solutions related to provisioning, billing and client management for telco carrier Wholesale Service providers.
As per the agreement between NOR and ECConnect, both the companies are responsible to mutually market each other’s product and services to their respective clients and customer base. They are also responsible for identifying any opportunities of each other so that both the parties have mutual benefits. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]
Since for a very long period, ECConnect was providing “Optus Wholesale service provider” all-in-one provisioning, billing and client management solutions. Now, it is stepping ahead of this and looking for an opportunity where it can increase its recognition in Australia. It wants to pitch into the new market and to expand globally for which it is supporting through investments.
Both the parties will now be mutually establishing marketing frameworks for each other. Further, they will finalize the terms and conditions to cover all the aspects their partnership along with the commercial terms. The company expects that within 90 days of the strategic partnership agreement, they will finalize the target launch date.
NOR remains a consistent negative performer after getting listed to ASX. For the past five years, NOR ’s performance was 54%. Its last one-year performance was -77.27%.
For the FY2018 ending on 30 June 2018, the company made a net loss of $4,044,223. From the balance sheet of the company, it is clear that the company is in a position where it can easily meet its long-term obligations. However, it will face challenges in meeting short-term obligations and its working capital. It is due to the reason that there is a minimal difference in the total current asset which the company holds and total current liabilities. The current asset of the company was $1,398,280, and total current liabilities was $1,094,541. Also, there was an increase in the accumulated loss in FY2018, which could create a negative impression on the investors and the shareholders of the company. It also highlights the poor operating performance of the company. The total shareholder’s equity of the company is $410,068.
Though the operating activities of the company, there was a net cash outflow of $3,648,441 Here, the company made payment to the employee and the suppliers and the payment of interest. Through the investing activities of the company, there was a net cash inflow of $320,051. Here, the company has taken a loan which is the source of cash inflow.
Through the financing activities of the company, there was a net cash inflow of $2,927,142. Here, the company has raised revenue by issuing shares in the market which forms the source of cash inflow.
By the end of the financial year 2018, the net cash and cash equivalent available with the company was $1,079,855. By the end of trading on 17 December 2018, the market price of the share was $0.004 with the market capitalization of $7.84 million.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.