Declout

Took a quick glance at the 3-year financials. Seems revenue scaled up very quickly but cash flow is still -ve (as in FCF).

Balance Sheet is also not strong enough to borrow significant amounts. Too much of the current assets sits with finance lease receivables (wonder what this is?).

(17-10-2012, 09:44 PM)yeokiwi Wrote: The management does not look like nerds..haha. They look more like businessmen that are earning a living in IT industry.

Management team that has nerds...
http://www.apple.com/sg/pr/bios/

It is hard to find nerds in Singapore companies' management team.

The CEO Vesmond Wong is a nerd. He built up an IT company and sold it to Koh Boon Hwee prior to founding Declout.

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(17-10-2012, 11:17 PM)sgd Wrote: Online system that can handle heavy traffic like world of warcraft, jobsite monster.com or facebook are not cheap. These systems are not like in the movies 1-2 pc located in some garage or some nerdy kid's bedroom.

I read years ago monster.com has over 3000+ servers, when you browse the site you are actually hitting one of their 300 web servers that are optimized load balanced for heavy traffic so people won't feel a thing when they upload their resume not even a drag. 1 server can cost anything from 2000 - 20,000 depending what it is for, haven't count things like network appliances miles and miles of network cabling and licenses for software, security and also IT hires to manage the site to be up 24 x 7 x 365

If you think that is an enormous expense I got news for you, facebook has over 30k servers, over 3000 of those are webservers that are load balanced, they employ an army of thousands of IT engineers and software people to manage their site just for people upload photos chit chat with friends troll for likes all of which doesn't generate much income. Why do you think they needed an IPO?

So you want to build an infrastructure for global gaming site like WOW we talking about at least 100 servers minimum, hosting fees, IT hires etc ... not cheap leh

Acclivis, which is a 100% owned subsidiary of Declout is in the business of providing server space and racks. There is synergy in their company business. They dont need to buy extra server space from data centers as they are already operating one.

My point is you want to get a franchise like world of warcraft the franchisor will want to see your infrastructure. Is not so simple just operating a datacenter.

Just to give an idea of perspective. Years ago Inland Revenue Singapore launched their tax portal to allow people to file their own income tax returns also the current system that is in place. Then they sent out notification to nearly 900,000 people to inform them to file their taxes by certain deadline or get a fine. Some of you may remember this recall that after a few days of the portal launch the system crashed and kept crashing because 900k people didn't want to get penalized kept trying to get into the portal to file their returns before the deadline. The system was a bad initial design from the looks of it I think some civil servant badly underestimated the load didn't cater the budget for it, the system didn't look like it had any load balancing or redundancies that's why the website kept going down. That's what 900,000 people who logon at the same time can do to a system without proper redundancies.

So if you want to be a franchisee for highly addictive WOW (world of warcraft) which has millions of subscriber customer base from all over the world(and still growing) who want to logon to play everyday, think of how much you going to need to spend to build the infrastructure that can able to handle that kind of load.

Wow, this is a good case study of risk-taking. Need to be a venture capitalist to invest in this one. Honestly, the technology and concept are relatively new so that we have no clue how this will pan out. They may be ahead of their time but this is no gurantee that it will take off. I confess thatI haven't had the time to look at their prospectus. This may not be for true blue value investors.

The part I don't understand is why go public at this stage of the business and not look for funding from VC?

(20-10-2012, 10:19 PM)LionFlyer Wrote: The part I don't understand is why go public at this stage of the business and not look for funding from VC?

2 VC have already invested in the company according to the prospectus.

Declout starts trading tml!

Good stirling debut! A promising start to the next Tencent Holdings!

Fell off my radar after the IPO but it went down to 0.16 which was close to the book value in Dec. Results looks decent, but will reserve my comments after a closer look at the numbers.

http://declout.listedcompany.com/newsroo...B29C.2.pdf

http://www.remisiers.org/cms_images/rese...130312.pdf

edit:
not vested

any1 has further insights to share on this counter as was highlighted by frds to take a look at it...for long term...