MaeMode's Earnings Increased But ....

Here's an update to the postings on MaeMode.

Maemode announced its earnings last night.

I could actually use the same template as what was posting last on MaeMode on 29 Jan 2011, Update On MaeMode

1. Sales. Improved.
2. Earnings Improved.

Checked. For both once more. Yes, sales and earnings did improve sharply. To be more precise:

In 2007 it made 16.218 million.
In 2008 it made 20.418 million.
In 2009 it made 11.793 million.
In 2010 it made 6.940 million.
2011 Q1 it made 0.852 million.
2011 Q2 it made 1.965 million.
2011 Q3 it made 3.261 million. *latest*

But yet again, the simple question is the improvement good enough?

And here's the updated table.



As can see, the fundamental weakness in MaeMode's balance sheet is rather clear. Debts increased (once more) and again the increase in receivables is frightening!

Let's ask some simple questions.

Take the latest quarter-to-quarter comparison, ie let's compare fy 2011 Q2 numbers with fy 2011 Q3 numbers.

So sales revenue increased from 114.713 million to 137.149 million. This is an increase of 22.436 million. And the reported net earnings increased from 1.965 million to 3.261 million, or an increase of 1.296 million.

But look at the loans. Its loans increased from 324.238 million to 340.267 million! An increase of 16.029 million.

And the receivables? It has now ballooned from 362.236 million to 390.738 million! Or an increase of 28.502 million!

And of course, here's the daft question once more.

Why MaeMode do business with collecting money one?