A Brief Look at Mems Latest Quarterly Earnings.

Mems reported its earnings on 30th June 2008 and I decided to have a brief look at the concerns mentioned on the blog posting Mems Asks For Support!!

Let me repost briefly what was said then. I will add in new comments in red fonts.

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2. How is Mems doing now? I took a look at Mems finally released quarterly earnings early this month, A Look At Mems Technology Again

• Now that Mems had finally reported its earnings and resumed its trading, I thought I take a look at Mems again.
  
  Quarterly rpt on consolidated results for the financial period ended 31/1/2008
  
  Net earnings was only 1.434 million from sales revenue of 16.464 million. Only 1.434 million. This is utterly smallish eh? ( Net earnings decreased to 79 thousand from sales revenue of 19.913 million! Rather poor yes? )
  
  Let's look at the Balance Sheet.
  
  

  
  Trade receivables now totals at 34.998 million. ( Trade receivables has increased to 41.283 million!!!!!!!!! Given the fact that Mems reported a net earnings of a mere 79 thousand, the receivables increased by a whopping 6.285 million! Something is terribly wrong here! )Reported period is at 31st January 2008. Compare to the column on left, receivables were only 22.824 million. Which means receivables increased a whopping 12.174 million. Which is extremely massive when the company's net earnings is only 1.434 million for this reported period.

  Cash and bank balances as at January 2008 shrank to 9.874 when compared to July 2007's balance of 18.995 million. ( Cash balances shrank to 3.191 million! )

  And the below table highlights Mems' liabilities:

  
  Total loans as at 31st Jan 2008 is at 43.355 million compared to a loan total of 34.267 million in July 2007. An increase of 9.088 million in loans. ( Total loans is now 50.796 million. Increased by 7.441 million! )
  
  How?
  
  As it is what do you see?
  
  I see its net earnings as rather extremely small with low profit margins with a rather below average set of balance sheet. Receivables and debts are increasing while cash is shrinking!

How?

Well, earnings got even worse. Cash balances shrunk while loans increased. And the trade receivables are totally unreal at 41.283 million!!!!!!!!

Mems last traded at 0.085!