ISS

[stockpanther]

diluted market cap now at $35mil. Reckon it needs another announcement to help it run more?

[stockpanther]

I sold 2/3 of my ISS holding today. I still think there are good things ahead for the company, but I had over 1/4 of my portfolio tied up in this one so wanted to take some gains...and I'm happy enough with a 70% gain in just over a month.

Will continue to hold the other 1/3 because this company still has some good prospects ahead for it.

[Zephyrus]

quote:Originally posted by ONTHENOSE

ISS Group Limited
1ST FLOOR, 117 STIRLING HWY NEDLANDS,
PERTH AUSTRALIA 6009
PO BOX 1107 NEDLANDS WA 6909
PH: + 618 9386 0800 FAX: +618 9386 5941
E MAIL ISS@ISSGROUP.COM.AU
WEB: WWW.ISSGROUP.COM.AU
ACN 109 443 852
22 December 2006
The Manager
Company Announcements
Australian Stock Exchange Limited
4th Floor, 20 Bridge Street
SYDNEY NSW 2000


Dear Sir

Recommended Vendor for Data Integration Technologies for Saudi Aramco

ISS Group Limited (ISS) is very pleased to announce that it has been formally approved as a
Recommended Vendor for Data Integration Technologies for Saudi Aramco, as a result of the
Application Integration Technologies Evaluation.
Inclusion on the Recommended Vendor list for Saudi Aramco is a very important step in
advancing the Company’s working relationship with the world’s largest oil producer. The
inclusion means that ISS will be invited to tender on future Data Integration Technology
projects and confirms the success of the pilot work undertaken by ISS for Saudi Aramco over
the past twelve months.


Yours sincerely,
Shane Attwell
Managing Director
ISS Group Limited
About ISS Group:
ISS Group Ltd. listed on the ASX in 2004.
ISS was established in 1995 and is an information and technology company that develops and
markets infrastructure, application and plant optimization software for the oil, gas and mineral
processing industries. The company’s client base includes major oil/gas and minerals
producers.
Visit the ISS Web site at http://www.issgroup.com.au for more information.


The pilot testing with Saudi Aramco, which concluded with "Recommended Vendor" status, was carried out over 200 wells.

Considering Saudi Aramco have over 10,000 wells, there must be huge upside to come.

[Flying Goat]

ISS Group, awesome. Good volume today busting through the 40 cents barrier!!!


Incidentidally that represents the point at which I just doubled my money :D


Someone is trying to get on board, if you check the depth today, a few tiny parcels are sold at lower prices in order to keep the price down while the value weighted average went through at nearly 40 cents...

My feelings, once again are that this is event driven. Last time we saw it before the Saudi Aramco announcement so there was plenty of time for those in the know to buy up large, not from within ISS but I assume from those connected to their customers, it is not as if there is a shortage of investment dollars floating around in the middle east.

Keep in mind that ISS currently have sales partners on the ground in Russia, Middle East, America, Asia etc and that all the current Australian customers (BHP, RIO, Stuart Petroleum etc etc) have accepted and adopted the product suites and are signing up for more. Then you look at something like Essa's recent progress in Russia there is no reason these guys cannot follow suit, innovation in the mining industry are occuring in Australia and being accepted abroad. We are, after all the "new world" and in my opinion very open to innovation. I think the chances of another contract on the wind soon are are high.

My only hope is that they can manage the staffing pressures that go with that growth.

FG
:D

[Torrero]

seems like today there is some light seling to bring the price down so someone can accumulate at a lower price.

cheeky

[rtbc]

Hey guys thought I better start contributing a bit more to this site/post.

Below is the email response to me from Shane Attwell (CEO of ISS)from Nov last year fyi. His answers in red.

Regads
Sam

Hi Shane

As I said I have been looking into ISS over the past while as a keen prospective investor. Obviously a very exciting time for ISS with the major contracts of recent.

I have a few quick queries of my own regarding the following:

The specifics of the recurring revenue (What proportion of each contract is recurring revenue and what term these recurring revenues are expected over);
Most of our current revenue is from services and license sales, with each license sale we have an 18% of license reoccurring revenue for approx 3 years.

Timing of the income from new wins (i.e. Of $1m income projection from the recent large contracts such as Rio and BHP, what amount is a deposit, instalment, recurring etc);
No deposit all is installment typically 20 - 40% up front but this varies significantly project to project, 18% of the license is reoccurring annually plus support services.

A bit more about what the software actually does (In a nutshell for someone who is not actively involved in the mining industry); and
Integrates disparate data across a minerals plant or oil an gas plant and then applies value add business applications to the data. Ultimately it tells an operator if the plant is performing and if not where the problems may be.

Any limiting factors that would restrict ISS from selling it's software to all (ambitious) of the major mining players in the world going forward.
No except the normal business constraints.

[wns]

Thanks for posting rtbc.

Any idea how much revenue ISS have bought in so far this FY?

As I've stated on this thread before, customers normally pay software maintenance (for support and updates) which is approximately 18-20% pa of the price of the license, so the 18% figure Shane mentions is in line with "the norm". Usually there's the option of buying 1 or 3 years software maintenance upfront, and the 3 year option is typically discounted to make it attractive.

Good price action today, up 7c. I bought in at 19.5c back in October 2006 and the share price has risen beyond my expectations.

[Zephyrus]

Yep, it's been a great ride. I paid a bit more for mine (21c just before the first run up to 26c) but still very happy. Hopefully ITE will follow suit soon.

[A J]

I paid 21c to, with the SPP I managed to get the full AU $5k at .19 so that was good.

Finally after around a year of doing stock markety stuff, things are going well. However it's still only paper money (I think that's what you call it) at this point. Isn't real until the money is in the bank.

Cheers
A J

[rtbc]

wns - I'm not sure re revenues however I look forward to the 4th quarter activity report sometime late Jan and 6 month prof figures shortly after.

I certainly wouldn't be cashing in on any paper profits yet...

[Zephyrus]

Won't be selling mine....

The pilot testing with Saudi Aramco, which concluded with "Recommended Vendor" status, was carried out over 200 wells.

Considering Saudi Aramco have over 10,000 wells, there must still be huge upside to come.

[Ricky99]

well I have over the past fortnight t sold out about half my holding in the early 40's, but have put a bit of it into the isso's.

So I'vs still got a holding, have managed to take some of my winnings off the table, and if it goes great guns then I'll get some great leverage via the isso's....

[steve fleming]

Plenty of money chasing the mining IT sector...and industry consolidation...ISS with its respected management, history of profitability and client base looks very nicely positioned...

---------------------------------------------------------------
From Miningnews.net

Mincom eyes bigger fish
Friday, 19 January 2007

BRISBANE-based software developer Mincom will target bigger acquisitions in the mining information technology sector as part of a more aggressive growth strategy if US private equity firm Francisco Partners' $A315 million offer for the company succeeds, chief executive Richard Mathews said yesterday.

Mathews, who has overseen a strong turnaround in Mincom's financial performance in the past two years, said Francisco Partners' $8.77 a share bid – representing a 110% premium on the most recently transacted share value of the public unlisted company – had been recommended by Mincom's board.

He said the offer had also been well received by staff who were among Mincom's shareholders, but could not comment on the views of major shareholders, 28% equity holder Colonial First State Private Equity Capital and Caterpillar (11.2%).

The holding of CFSP, a Commonwealth Bank subsidiary, is worth about $88 million at the Francisco Partners bid price, while Caterpillar's stake is valued at $35 million.

Both groups came on board at Mincom well before the 2005 arrival of Mathews, who said shares in the company were then fetching $2.00-2.50.

Significant improvement in Mincom's revenue growth and profits in the past two years culminated in a 20% surge in 2005-06 sales to $200 million. Net profit improved from $1.3 million in 2004-05 to $9.7 million last year.

The company's mining business segment generated about $84 million of sales in 2005-06.

While organic growth has been solid on the back of the global mining boom and increased penetration into new markets, Mincom has made a string of modest acquisitions in the past two years to lift its expansion rate.

Two weeks ago it bought US utility software developer, Conversant, and last week it announced the acquisition of Queensland-based JKTech's JKMetAccount metallurgical accounting software.

Mathews said a further acquisition should be announced next week.

"We've been able to prove to the market, and I guess Francisco Partners, that a team which has bought companies all over the world, integrated them and made them more successful, can do that well," he said.

"So I'm expecting more acquisitions – particularly in the mining space – and probably larger ones."

Mathews said question marks over Mincom's long-term ability to finance significant growth in the global enterprise asset management software market would be erased by the backing of Francisco Partners.

"We've put a big line through that one," he said.

Mathews said Mincom's major customers in Australia had a positive view of the proposed sale of the company to Francisco Partners. Failing arrival of a counter-bid, the transaction is expected to close within 90 days.

[steve fleming]

quote:Originally posted by steve fleming

Plenty of money chasing the mining IT sector...and industry consolidation...ISS with its respected management, history of profitability and client base looks very nicely positioned...

---------------------------------------------------------------
From Miningnews.net

Mincom eyes bigger fish
Friday, 19 January 2007

BRISBANE-based software developer Mincom will target bigger acquisitions in the mining information technology sector as part of a more aggressive growth strategy if US private equity firm Francisco Partners' $A315 million offer for the company succeeds, chief executive Richard Mathews said yesterday.
Significant improvement in Mincom's revenue growth and profits in the past two years culminated in a 20% surge in 2005-06 sales to $200 million. Net profit improved from $1.3 million in 2004-05 to $9.7 million last year.



If this deal is approved by shareholders then Mincom will be sold at a multiple of 32.5 times historical earnings...given unlisted companies are generally transacted at a discount of say 10%-15% to publicly listed companies, certainly puts ISS's current HISTORICAL P/E of 17 into perspective

the other amazing thing to note about this deal is how quickly value can be created in the sector...for the y/e 300605 Mincom reported a profit of $1.3m....just over 18 months later it is going to be sold for $315m

PS - Robbo - Nice to see you still lurking/reading!

[Flying Goat]

quote:Originally posted by wns



Any idea how much revenue ISS have bought in so far this FY?




Hi WNS

My revenue estimate for 1H FY07 is around 6 million, with a 1H net profit of around 1 million. My logic is laid out below, feel free to disagree:

1st Quarter Results we already know:

Revenue $3,160,000
Add Grant $188,000
$3,348,000

Less
Staff Costs ($1,193,000)
Other Costs ($881,000)

($2,074,000)


Net Cashflow $1,274,000


2nd Quarter result should incorporate:

Some of the 20%-40% initial installments from Shell Canada Gas and Rio Tinto Pilbara mines. Lets say each of the contracts are $1.4 million and around 30% is recieved on them this quarter, that would be:

Revenue $840,000

Plus additional recurring revenue on prior contracts, this particular item is just guesswork i am afraid but for argument's sake, lets say:

Revenue $1,000,000


Plus the first of ongoing earnings that will be generated from hosting IT activies Stuart Petroleum and their JV partners on the ISS server in WA which just went live this quarter, lets say...


Revenue $250,000


Based on results coming out of Asia to date there are a large number of junior resource companies using their off the shelf product on license fee basis. The Singapore office generated revenues of $26,000 in 2005 and $1,000,000 in 2006, clearly a rapidly growing sector. I would comfortably estimate $300,000 out of Singapore this for Q2 FY07

Revenue $300,000


Plus another $188,000 from the commercial govt ready grant.

Now, none of really know whether there has been any progress out of the new office in North America targeting the oil companies around Houston, Texas etc... but although no big contracts have been announced that does not mean that smaller clients aren't on board already. However, for want of keeping my estimate conservative I will assume that no cash is generated out of this office yet (aside from Canada, but that has been included above). Likewise, the European office that is targteing Russia at the moment has yet to report anything big so I will also assume zero earnings contribution from here, even though we do't really know if that is the case.

No to summarise Q2 revenue and work out costs based on Q1:

Revenue: $2,578,000

Staff Costs* ($1,312,000)
Other Costs** ($969,000)
Research & Dev*** ($250,000)
($2,531,000)

Net Cashflow $47,000


* Staff costs up 10% to compensate for North American office etc..
**Other costs up 10% to compensate for North American office etc..
*** R&D towards visiualisation tool

Therefore my 1H FY07 forecast looks something like this:

Revenue $5,926,000
Expenses $4,605,000
NPBT $1,321,000

NPAT $924,700


So there you go. They may seem a little on the conservative side but I strongly believe that the next twelve months will bring a stream of new wrok which will turn those numbers on their heads... the cost structure is such that adding additional $ millions the bottom line is quite realistic and achieveable over the next 12 to 24 months.

Cheers
Flying Goat

[Flying Goat]

quote:Originally posted by steve fleming



Mathews said question marks over Mincom's long-term ability to finance significant growth in the global enterprise asset management software market would be erased by the backing of Francisco Partners[/b].




Hi Steve,

Interesting article mate, the sentence above I found especially salient. Indeed, it seems the global enterprise asset management space is looked upon having the big growth prospects... and ISS are positioning themselves as leaders leveraged on over a decade experience and a growing number of world class clients. At current prices ISS would definitely be an attractive target, as you mentioned and especially with the foot in the door at the holy grail,,, Saudi Aramco! Guess it would all depend on Shane's intentions for the business as he and his partner Robyn hold 40% of the company between them, beyond that any takeover bidders would have to also convince managers of ANZ Nominees holding >13%. Think it will be an interesting year or two for ISS.....!


Cheers
Flying Goat


PS Actually I wonder if the ISS doubters are still lurking on this thread... they certainly aren't posting on it that's for sure!

[Flying Goat]

Second quarterly update out today, seems my forecast was optimistic, although it sounds like we are in for a strong second half with maybe some oil & gas company contract announcements. Must say that the i found the wording on the update to be a little waffle-ish, could not really follow exactly what they mean to be honest. Never the less, looks like costs are contained very well and this was pleasing, with net cash inflows of 800k for first six months. Hoping for another sell down tomorrow for a chance to pick up a few more...

FG

[Flying Goat]

and what a sell down it was! Yikes, quite a few stop losses trigerred today by the looks of things, and yes i used the opportunity to top up at around 31 cents... was surprised by the extent of the sell down when hints were dropped of good things to come this financial year, we'll see

FG:)

[tommy]

ISS Group Limited (ASX:ISS) is pleased to report solid growth in both revenues and profit before tax for the six month period to 31 December 2006.

Revenue grew by 26 % and profit before tax grew by 20% over the corresponding period. The increase in both revenue and profit is a result of our continuing investment in marketing in Australia and overseas and product enhancement through our commitment to product excellence via our R&D spend noted in the table of results below.

Based on the first half results, the ISS board is pleased to announce an interim dividend of 0.5c (half a cent) per share (unfranked) payable on all issued shares. The record date for dividend entitlements will be 5.00 pm WST on Monday 16 April 2007. The dividend payment date is Monday 30 April 2007. The Dividend Reinvestment Plan will be available to all shareholders.

ISS is committed to expanding the operations of the company with a continued focus on the growth of our products in the international market. We have been taking full advantage of the Western Australian resource boom but in parallel developing overseas markets.

Major operational changes in the six months to December have included the establishment of offices in the United Kingdom and the United States. ISS UK offices are situated in Aberdeen, Scotland and Southampton. The US office is located in Houston, Texas. The managers of these respective branches each possess over 20 years experience in the ISS marketplace.

The main role for these offices over the reporting period was to establish a market presence and raise brand awareness in the surrounding regions. Already, each branch has issued several key proposals and are now progressing with a number of promising opportunities. As was the case in Asia, the ISS technologies have been well received in both of these regions.

The Shell Canada project is a very good example of this acceptance, as ISS won the bid against competing major North American technologies.

ISS continues to invest significant funds on the development of the geospatial add-in to our flagship product BabelFish. This R&D has been supplemented by the AusIndustry R&D grant ISS received from the Australian government. In obtaining this grant, ISS has been recognised for the innovation demonstrated in our products.
In the Middle East, ISS has received preferred vendor status with Saudi Aramco as a result of the success of the ongoing
pilot projects. In addition, ISS is pursuing several opportunities in this region.

ISS Asia has experienced significant growth as it worked to complete several major projects. The number of personnel in this branch has increased by approximately 50% to meet the demand of the projects originating from this region.

The ISS head office in Perth also expanded to facilitate ongoing international and domestic growth. The number of technical and senior management personnel increased significantly.

In conjunction with the development of operations on an international scale, ISS continued to focus on our domestic market. We have added several new blue chip clients to our customer list and have recently opened offices in Sydney and Adelaide (post December 31).

ISS Group is well positioned to move forward globally; well beyond the extent of the current boom conditions being experienced in domestic and international oil, gas and minerals markets. In short, we expect to achieve significant growth in our overseas revenues in the next fiscal year as a result of heightened awareness of our Babelfish application and complementary minerals, oil and gas suite of products.

[ONTHENOSE]

Hi Tommy,


Report dosnt lookk bad at all to me...[8D]:D

What are your thoughts?? As market has reacted negativly...:(


Regards

Mike

[tommy]

Hi One da nose,

EPS was dragged down by office establishment costs and allowance for doubtful debts, plus income tax expense despite healthy increase in revenue. Put that into perspective, and you get a more accurate picture of where ISS stands now.

But some holders were probably expecting too much, and just saw "NPAT down 3%" and decided to lock in profits at this point. Trading volume is low (huh? 30K?) so it's not really the entire market reacting negatively to the announcement...

[ONTHENOSE]

Hi Tommy,

Very true about the volume... A few small holders jumping ship..


Regards

mike

[Flying Goat]

Hi Tommy and OTN

Were no surprises in the result as we had most of this information already from the second quarter review, not quite sure what the sell down was all about but have noticed quite a few companies being sold down this reporting season, even on quite good results.... as Tommy says people have high expectations then decide to lock in profits if things turn out less than great... guess this sounds like a sound theory??! Still, in my view the CEO would not be so upbeat and bullish about further international growth in the coming year if they did not have sufficient reason to believe its true. Pleased to see another dividend, and also believe that they would not be paying this out unless they were 100% sure about strong cashflows continuing in future. Hope there will be another div reinvestment plan....!

FG

PS Tommy, will post something on ETR thread in a minute check it out, my view is excellent arbitage potential there right now....

[FarmerGeorge]

I bought ISS once I'd looked into it after davidrob brought it to our attention, $.215. Remembering the type of stock this is I don't think this HY has any really bad indications for the future. In terms of profit what we want to see happen hasn't happened yet but the signs are all there. When it does happen it will be fast and I'm happy to hang around until it does rather than try and pick the moment.

[Flying Goat]

quote:Originally posted by FarmerGeorge

I bought ISS once I'd looked into it after davidrob brought it to our attention, $.215. Remembering the type of stock this is I don't think this HY has any really bad indications for the future. In terms of profit what we want to see happen hasn't happened yet but the signs are all there. When it does happen it will be fast and I'm happy to hang around until it does rather than try and pick the moment.


Absolutely, actually I will be looking to add once again at <30 cents, as if discount dividend reinvestment plan is applicable again its an excellent way to develop a decent holding before ISS' value really comes to the fore, which may not happen for another 12 months but good things happen to those who wait!

FG

[FarmerGeorge]

FG quite right the DRP is definitely a nice bonus which we can take advantage of

[stockpanther]

As mentioned previously I still retain 1/3 of my holding.

This is a decent result for ISS...many just had their expectations far too high though.

There will be some consolidation in this sector I think...ISS could get snapped up, who knows?

I'll continue to hold my very small holding.

[Flying Goat]

quote:Originally posted by stockpanther

As mentioned previously I still retain 1/3 of my holding.

This is a decent result for ISS...many just had their expectations far too high though.

There will be some consolidation in this sector I think...ISS could get snapped up, who knows?

I'll continue to hold my very small holding.


Hi Stockpanth,

Nice to see you back, havent heard from you in a while. Yeah, not much interest in ISS at the moment but I am still upbeat about large contracts later this year as alluded to in last announcement, also agree that the are well positioned to be of strategci importance to buyer such as mincom, as they have the foot it in the door of pretty much all the aussie minors. Will look at topping up at these prices,...

fg

[stockpanther]

I know of a listed canadian mining software development company that is also looking at making further acquisitions in the mining sector....they acquired Australian-based Surpac Minex Group (unlisted) last year.

[Flying Goat]

man, there is a big seller out there today, wonder what is up with that!?

Thanking about taking a few bites at that 25 cent sell order tomorrow:D

FG

[tommy]

quote:Originally posted by Flying Goat

man, there is a big seller out there today, wonder what is up with that!?

Thanking about taking a few bites at that 25 cent sell order tomorrow:D

FG


Market is crazy today, TRF and ELX jumps and ISS drops... the volatility experienced by microcaps is unpredictable at the moment. Want to dip my toes back into the market but will see how it goes this week, I am getting bored just sitting on the sidelines!!

[Flying Goat]

Hi Tommy,

I know what drove Ellex up today, it was a Market Analysis newsletter that has a very wide following in NZ, every month his recommendations cause big spikes in the microcaps that he recommends. Another one to look shaky lately is ITD, am not really sure why?? Perhaps people are headed to the large caps over the last week or so???

FG

[FarmerGeorge]

ISS is still relatively unproven as a listed company despite the success of its products. They are a bit of a strange one in that they are a small, 'high-growth' tech stock that pays a dividend. I'm not sure if management have really got to grips deal with all the demands (particularly the administration) faced by a listed company. However, they do seem to be able to create, sell, and maintain useful software and as long as they continue to do that well I'm willing to hold on to mine. And pick up a few more if they're going cheap. ;)

[stockpanther]

I still really don't know why ISS is bothering to pay a dividend.....but that is ground that we have trodden over before :)

[tommy]

quote:Originally posted by Flying Goat

Hi Tommy,

I know what drove Ellex up today, it was a Market Analysis newsletter that has a very wide following in NZ, every month his recommendations cause big spikes in the microcaps that he recommends. Another one to look shaky lately is ITD, am not really sure why?? Perhaps people are headed to the large caps over the last week or so???

FG



Hi FG

Thanx mate, didn't know what had driven up ELX today so your explanation is appreciated:) Still way below sector average so might see the downtrend reversed from here on?

And yeah, ITD is slipping too, in general all microcaps have been very irratic lately on small volumes as a few sellers are enough to put downward pressure on thinly traded stocks.

Now back to ISS... huge seller at 0.25 at the moment, obviously not interested in waiting until ex-dividend. mmm....

[Flying Goat]

Yeah, I saw the seller Tommy, but in my opinion not the most sophisticated selling technique in an ultra-tiny-cap like ISS, looks like highly impatient behaviour or maybe they just need the cash elsewhere. Who knows. I will give it a few more days and might go and low ball him/her for that parcel of shares at around 22 cents because if the seller is desperate enough to quit now at 25, is probably desperate enough to quit even lower... hehehe my eeeeeeevil plans!

FG

[tommy]

Hi FG,

Agree, he/she should slap on a sell order at least in smaller parcels... that is just way too many in one sell order!!

Let's hope he just presses the "sell at market" button so we might see ISS below 15c;)

[Flying Goat]

quote:Originally posted by stockpanther

I still really don't know why ISS is bothering to pay a dividend.....but that is ground that we have trodden over before :)




I think there is sufficient reason:

a) there have plenty of cash
b) are expecting plenty more
c) was among key ipo objectives
d) their growth is not capital intensive
e) they are not burning/bleeding cash like other growth techs (eg ITE)

I stand by my old debate, that dividend is a good thing and with DRP will reward the patient.

FG

[tommy]

ISS options up 46%[:0]

Damn, should have bought more during the recent nosedive[:o)]

[stockpanther]

quote:Originally posted by Flying Goat


quote:Originally posted by stockpanther

I still really don't know why ISS is bothering to pay a dividend.....but that is ground that we have trodden over before :)




I think there is sufficient reason:

a) there have plenty of cash
b) are expecting plenty more
c) was among key ipo objectives
d) their growth is not capital intensive
e) they are not burning/bleeding cash like other growth techs (eg ITE)

I stand by my old debate, that dividend is a good thing and with DRP will reward the patient.

FG


All they did was incur costs to do a capital raising then pay some of it out as a dividend?

[A J]

Are "Broker & Investor Presentations" released once a year? And in general around the same time each year?

In the case of ISS one was released on the 4th April last year, could we expect another soon?

Just woundering provided the report looks good it could be something to kick the SP back up a little after its lows of recent?? (mind you it's kicked up a little within the past 5 days)

Otherwise we have the "Third Quarter Report" to look forward to towards the end of this month I spose. I'm not up with the game too much but perhaps this could affect the SP to.

In other words, positive SP action soon? I hope so! :)

Cheers
Aaron

[tommy]

ISS down 16% today, someone dumping the stock (low volume so not worried)

[Flying Goat]

Hi Tommy and AJ

Not sure about investor presentations, but if you check the front page of ISS website under news section you will see that there is talk of plenty of activity, and that in March 2007 news releases. Guess it is still significant enough to announce to market, but my feeling is there will be some big announcements this year, maybe not the Fin year but surely this Calender Year, i say that based on my own interpretation of the review of operations on interim report. Anyhow, some snippets from website you will see:

6 March 2007
ISS Announces Opening of Houston Office.
ISS is pleased to announce this opening as it builds on some recent success with some large projects announced in 2006 and some upcoming projects anticipated in the first half of 2007

26 March 2007
ISS Announces Opening of Aberdeen Office (26 March 2007)
In addition to the European Head Office, located in Southampton UK, ISS is pleased to announce the opening of a new base in Aberdeen. This office will be responsible for ensuring that existing clients and potential customers have a regional point of contact for support and project delivery.


The two key things that I took out of that were that they have sign clients in Europe region already, and are anticipate some bigger contracts this year in north America.

FG

If I can buy more at 25 will be as that is when option dilution kicks in, and really there is still a spec element to the company imo so am not will to over pay the odds to limit my risk....

[A J]

quote:Originally posted by A J

In other words, positive SP action soon? I hope so! :)

Cheers
Aaron



quote:Originally posted by tommy

ISS down 16% today, someone dumping the stock (low volume so not worried)


Man I find that funny, oh well. Coincidence!:D

I am to hoping to pick up some more shares with the lower SP to Flying Goat. But yeah, overall things looking good for the future.

Cheers
Aaron

[Flying Goat]

Aaron,

You are optimistic if you think that you'll be able to buy any decent quantity below 25 cents... but we'll see.

FG

[A J]

Not neccaserily 25 and below, just somewhere below 30 is ok..preferably 27 or 28c etc.

Cheers
Aaron

[A J]

Why is the lowest offer 50 this morning?

Not thinking much, just woundering.

Cheers
Aaron

[Torrero]

sometimes people dont like putting there offers on the table to just before the market opens, then no one can see there hand. This can usually explain it..

but this spread is a little extreme. I suggest u check back just before the market opens to guage what will happen in the opening moments.

[A J]

Will do Torrero, thanks.

I thought it may be something like that, or people haven't been active recently because of the easter break etc.

Cheers
Aaron

[catbert]

Ex-dividend today, so all existing orders were purged prior to open. It then takes a while for people to place new orders, especially in a relatively illiquid stock.

- catbert

[Snow Leopard]

I kind of think that maybe the time is possibly coming when ISS is worth thinking about with regard to a potential buy:
but on the other paw......[}:)]

[Flying Goat]

quote:Originally posted by Paper Tiger

I kind of think that maybe the time is possibly coming when ISS is worth thinking about with regard to a potential buy:
but on the other paw......[}:)]


Yep - is worth some thought PT, they have cash, they have customers and soon, imo... more contracts...?!!

Only downside to Aussie exporters at the moment seems to be the currency, esp smaller caps like this that are not hedged.

I still hold them, an am not too phased about the long boring spells of inactivity, the fun should start again toward end of year imo.

[shane_m]

I see they opened several sales offices around the world, this would cost them in terms of salaries and rent etc. I am guessing late in the year or early next year for significant contract ann. time will tell

[Snow Leopard]

Main problem with ISS at the moment is the liquidity [of the shares]

[Flying Goat]

My good friend ISS appears to be ready to stage a comeback in interest.

Up 9% today on much heftier than usual volume. Think we can expect news soon...?!

[Flying Goat]

quote:Originally posted by Flying Goat

Hi WNS

My revenue estimate for 1H FY07 is around 6 million, with a 1H net profit of around 1 million. My logic is laid out below, feel free to disagree:




Just revisiting a post I made back in January - looks like they are tracking slightly behind expectations as Quarter 3 results reveal that it has taken nine months of this fiscal year to generate slightly over $7 million, and operating cash flows of of $1.36 million, and that in the face of poor exchange rates. Add to that we know revenues are lumpy so quarterly results are not great guides, never the less my personal opinion based on Friday's result are for an npat around $1.8 million which would be up on last years and put them once again on modest pe of below 12. Thing that pleased me with quarterly results were the fact that in the face of no significant contract announcements we saw receipts from customers >$2m - yes, am aware that some of this will be annuity ongoing but also generated from new smaller business not larger enough to warrant market announcement.

Happy holding... see you at the 50 cent party post next contract announcement!

[mamos]

Also looking forward to the DRP issue. This would be calculated on the 5 days prior to and including the record date (16th April) when the share price was around 26c average.

I gave Advanced Share Reg a call on Friday and they said they were calculating the price and allocations will be made very soon.

Waiting for news on Saudi Aramco tenders given Management expects “significant orders” to materialize in the current half year and beyond.

Pleasing to see costs were controlled as well given their increased cost base from global expansion involving offices being opened up overseas.

[Flying Goat]

Hi AA

Just picking up on your comment about ISS in the ITE thread where you suggested that " ITE is getting contracts, ISS has obtained the right to tender for a contract..."

must say that i could not disagree more on that one mate.

ISS have ongoing business with every Australian blue chip company in the resource sector, and have cast their marketing net wide in terms of growing their presence and customer base all around the world from Singapore to England to America.

If you do some digging you will find that the >$7 million revenue and >$1m in net profit generated so far this Financial year as been nearly as much from smaller unannounced work from wider customer base, as from the larger contracts that warrant announcement.

With ITE the contracts are large so song and dance is made about them, yet in my own opinion having a concentrated customer base, with feast or famine type reliance on smaller number of contracts increases the risk profile (as i interpret situation at ITE) yet ISS on the other hand are slowing but steadily building a scaleable business, brick by brick.

As for Suadi Aramco - in my opinion that is not the driving factor behind the company - that is merely the possibility for a major bonus. Saudi Aramco has the biggest oil and gas reserves in the world, that is fact and no exageration, more than Exxon. If they were to plug up just a small percentage of their wells (of which they have approximately 10,000) with BabelFish Oil and Gas Suite products then ISS could easily move from a 30 cent share to a $2 share, imo.

By the way, DRP shares were issued yesterday at 23.98 cents, while the stock is trading at 36 cents, last DRP shares were issued at around 18 cents... this company, for me persoanlly has been a fantastic wealth creator, and I am confident that holding long term will continue to deliver..


PS no offense meant AA, I know how you enjoy a good debate from time to time ;)

PPS checked out ITD lately? Seems to be some fund action moving in, volume and price seem to be making headway, and the persistent sellers seems to be thinning a bit - hoping for some good quarterly soon??

[stockpanther]

I'm still impressed with ISS - I dont hold any stock in the co anymore (dumped 2/3 a while back at 36c, and the rest at about 30c)...perhaps I was too hasty, maybe...but you have to trust your gut feeling and analysis, and thats what I did.

I think ISS still has great potential (and I wish good luck to the holders of ISS for a fine selection), and not to try and open a can of worms, but ISS makes money, generates positive cash flow and looks to have a profitable business model...ITE just burns cash IMO....all these contract wins still haven't changed my mind on ITE.

[mamos]

I am very happy with the DRP as well. I knew it would be calculated on a low share price. As with FG this has happened twice now, with the first one issued at a relatively low price too just before the share price shot up.

It's nice to buy with margin of safety as there is less chance of worrying and selling your shares when the share drops 20c from 44c highs only a few months earlier.


quote:Originally posted by mamos

Also looking forward to the DRP issue. This would be calculated on the 5 days prior to and including the record date (16th April) when the share price was around 26c average.

I gave Advanced Share Reg a call on Friday and they said they were calculating the price and allocations will be made very soon.

Waiting for news on Saudi Aramco tenders given Management expects “significant orders” to materialize in the current half year and beyond.

Pleasing to see costs were controlled as well given their increased cost base from global expansion involving offices being opened up overseas.

[winner69]

quote:Originally posted by absolut-advance

Yes , ISS is cashflow positive ITE isn't but heres the thing...

12 months ago ITE was 6 c now around 16c = 300% gain

12 months ago ISS was 17.5c Now around 36c = 205%

Both very good companies IMO I like both have held both know both,

ITE has a much larger market cap even though it isn't earnings positive yet...ISS is.

WHY because ISS doesnt have the potential of ITE, but ITE holds more risk IMO

Two very different companies which will have to take two very different paths to become successful


AA

quote:Originally posted by stockpanther

I'm still impressed with ISS - I dont hold any stock in the co anymore (dumped 2/3 a while back at 36c, and the rest at about 30c)...perhaps I was too hasty, maybe...but you have to trust your gut feeling and analysis, and thats what I did.

I think ISS still has great potential (and I wish good luck to the holders of ISS for a fine selection), and not to try and open a can of worms, but ISS makes money, generates positive cash flow and looks to have a profitable business model...ITE just burns cash IMO....all these contract wins still haven't changed my mind on ITE.



Bit generous on your %age gain figures there absolute

Whatever well done on your gains ... keep at it and the 300% might be a reality

[A J]

Can anyone explain to me the recent rise in ISS?

Cheers
A J

[thereslifeafter87]

quote:Originally posted by A J

Can anyone explain to me the recent rise in ISS?

Cheers
A J


More people think it's worth more now than they did a week ago, hence the rise.

[A J]

yeah yeah....:D

Anything else?;)

Cheers
A J

[tommy]

Hi AJ,

ISS is a very tightly held stock so to accumulate decent volume it is hard NOT to push the price up. Trading volumes are not particularly high but chart looks good.

I don't hold ISS but hold quite a bit of ISSO:D

[A J]

Thanks Tommy, volumes have been quite high the past 3 or so days, today not as high as you say.

Oh well, hopefully some good news coming.

Cheers
A J

[Flying Goat]

Exercise of options. Anyone know what that means exactly, does it mean they have been exercised as in bought, or as in bought and sold all in one swoop? Sorry about the ignorance but am actually unsure...

[steve fleming]

quote:Originally posted by Flying Goat

Exercise of options. Anyone know what that means exactly, does it mean they have been exercised as in bought, or as in bought and sold all in one swoop? Sorry about the ignorance but am actually unsure...






Hi FG

"On 23 September 2004, 22,266,667 unlisted options were granted over ordinary shares, exercisable
any time prior to their expiry date being 30 September 2007. The options have an exercise price of
$0.25 each for the life of the Option."

115,000 of these options were exercised (ie converted to ordinary shares) @25 cents on Monday.

Expect the balance - 21,989,167 - to be exercised before the end of sept...(assuming they remain in the money)

17 mil of these belong to Shane Atwell

Cheers

[Flying Goat]

Thanks Steve,

So it just means they were converted to shares, so I assume when and whether those shares are sold does not need to be disclosed, just the conversion.

Cheers
FG

[tommy]

ISS profit update, break even at best... share price nosedives 18%!

I don't hold ISS but hold ISSO and will continue to hold for the time being. Dividend payment seems to have been a bad move in hindsight, pain of expansion obviously is obviously affecting the bottom line. "Lumpy revenue" is a concern and ISS would have to get more continuous recurring revenue streams to maintain stability in income if it cannot win large contracts consistently. That said, one big hit with Saudi Aramco will send ISS through the roof so cannot dismiss ISS as a dud, there is a lot of potential at ISS if it can get its expansion plan under control.


* Delay in achieving major contract commitments
* Will lead to lower 2nd half revenue, costs committed
* Full year break-even or small loss for fiscal 2007
* Cash and receivables is very healthy approx $4 million
* ISS Group breaks into new industries
* Overseas branches beginning to receive orders
* Outlook for 2008 – 2010 is very good


ISS Group Limited (ISS) wishes to provide guidance on its full year 2007 operating results to ensure shareholders and share market investors are fully informed about the company’s activities. While ISS has not provided a profit forecast for 2007, the board and management of the company were anticipating results based on expected and
anticipated new contract commitments in the second half of 2007.

It is difficult for the company to forecast the timing of new significant contract signings. Accordingly, the board believes that it prudent to advise shareholders that it is unlikely to announce and book any new major orders in the remainder of this financial year.
This is expected to result in the company recording at best a break even result to 30 June 2007.

ISS has been investing in the development of our overseas offices to take advantage of significant opportunities presented to us in these regions. We are beginning to see return on this investment with several orders. The board reassures shareholders of the
high probability of success of a number of large contracts currently completing prefeasibility and feasibility trials. The costs of these activities are being carried and expensed in the current financial year. To emphasise - these contracts are not lost but delayed.

Our working capital position remains strong with cash at bank of approx A$3M and receivables of approx A$1M.

The nature of the ISS business (e.g. large contracts) will tend to create “lumpy” revenue and hence profit spikes over the next three years. On balance we believe the result of the revenue fluctuations will be positive however shareholders and investors should be aware of the capacity for earnings to vary from year to year. In particular, the 2008 financial year is looking to be a very strong year because of the contract delays in 2007.

On a positive note, the ISS Babel Fish product suite continues to impress potential major international oil and gas and mineral companies. Our presence in Asia, Houston, USA and Southampton, UK is creating significant pipeline of leads.

In addition to our traditional resource focused markets, we are very pleased to announce the development of customers in the concrete, chemical and food industries in Australia. More information on these new vertical markets will be provided in our shareholder newsletter.
The board will provide an update on the anticipated financial result for 2007 shortly after year end to keep shareholders fully informed.

Yours truly, Shane Attwell
Managing Director

[steve fleming]

Yeah, a bit disappointing Tommy.

Its kind of strange as i can't ever recall having seen ISS mentioned in the AFR before, yet today there was a really good positive write up on ISS in today's AFR.

Talked about the potential of Babelfish and overseas expansion and ISS's profitability.

That may have played a part in forcing ISS's hand in coming clean to the market.

[Flying Goat]

I was not too worried about the contract timing problem. Imo, that was overshadowed by flagging of new industry verticals. Looks better than ever to me. Looking forward to the next few years developments....

[wns]

The share price is almost back to where it was pre the announcement.

Didn't take long to bounce back.

As I started to read the announcement my first reaction was to sell, but decided not to as I kept reading.

[tommy]

quote:Originally posted by wns

The share price is almost back to where it was pre the announcement.

Didn't take long to bounce back.

As I started to read the announcement my first reaction was to sell, but decided not to as I kept reading.


Yup, very quick rebound indeed! Was lucky to pick up a few around 30c so not complaining[:p]

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aiss&draw.x=0&draw.y=0

[A J]

up to .38 this morning. Good good.

I wounder tho, we know things are delayed and good contracts look to be on the way. But seen as it will be in the new financial year most likely, when the end of year report comes out at the end June and repeats the fact that earnings are break even / maybe negative or whatever..........will the SP have another dip most likely due to a few uninformed people? Or will the market have learnt by now the situation etc?

Cheers
A J

[Flying Goat]

quote:Originally posted by A J

up to .38 this morning. Good good.

I wounder tho, we know things are delayed and good contracts look to be on the way. But seen as it will be in the new financial year most likely, when the end of year report comes out at the end June and repeats the fact that earnings are break even / maybe negative or whatever..........will the SP have another dip most likely due to a few uninformed people? Or will the market have learnt by now the situation etc?

Cheers
A J


I would say that nobody knows the answer to that question, hence the best strategy with a company is to buy and hold. Set and forget.

cheers

[mamos]

I think it will AJ.

I remember with ITE they came out with a statement saying HY maybe in loss. The shareprice dipped a little. Then when the HY actually came out it dropped significantly, even though it had already been alluded to in previous announcements.

I would not mind if it drops as:

1) I will top-up
2) More shares in the DRP (have had a good run so far)

Cheers,

Mark


quote:Originally posted by A J

up to .38 this morning. Good good.

I wounder tho, we know things are delayed and good contracts look to be on the way. But seen as it will be in the new financial year most likely, when the end of year report comes out at the end June and repeats the fact that earnings are break even / maybe negative or whatever..........will the SP have another dip most likely due to a few uninformed people? Or will the market have learnt by now the situation etc?

Cheers
A J

[Flying Goat]

Ummm, this pretty much says it all in my view, patient ISS holders will be heading for the big time in the next 12-24 months.... IMO


19 June 2007

The Manager
Company Announcements
Australian Securities Exchange Limited
4th Floor
20 Bridge Street
SYDNEY NSW 2000

Dear Sir

ISS Group International Offices Generating Revenue

PERTH, Western Australia – ISS Group Limited (ASX: ISS) is pleased to announce, after substantial investment in marketing overseas, the receipt of initial orders in our North American and European Offices and continuing orders in Asia.

ISS Group has been committed to strategically resourcing our international branches over the last two years. This is beginning to pay dividends as ISS has now received firm orders from leading players in the global energy, oil, gas and process markets.

Based in Houston, Texas, the ISS Group North America office has recently received orders from Hess Oil in Houston (via our partner company Industrial Evolution Inc), and a specialty electronics chemical producer in Northeast USA, to install ISS software products. These orders demonstrate the cross-industry capability of our product line and are supportive of significant opportunities for expansion.

Based in Southampton, UK, our European office has also confirmed receipt of orders from Huntsman Chemicals (now Sabic) and BG International Ltd (formally British Gas). The BG order covers the design for a global rollout of ISS software across the BG Group assets.

Based in Singapore, ISS Group Asia is continuing to receive orders in the region from companies such as ConocoPhillips, Petronas, Kodeco as well as ongoing work with Saudi Aramco.In addition to the new orders received, each of the branch offices has a very healthy pipeline of sales opportunities coming into the 2008 financial year.

Mr Grant Eggleton, ISS Group Global Business Development Manager said, “We are extremely pleased to see the positive response our products are receiving from overseas in the receipt of these firm orders. It is also interesting to see the products beginning to be used in other verticals such as food, cement, chemicals and electronics. The potential for ISS Group in overseas markets is quite significant and we hope this is a good indication of the future”.

About ISS Group:

ISS Group Ltd. listed on the ASX in 2004. ISS was established in 1995 and is an information and technology company that develops and markets infrastructure and application software for the oil, gas and mineral processing industries.

Visit the ISS Web site at www.issgroup.com.au for more information.

For further information, please contact:

Ms Rebecca Spyker
Communications Manager
ISS Group Ltd.
Ph. +61 08 9386 0800
Email: Rebecca.spyker@issgroup.com.au

[tommy]

ISS on an uptrend with fairly decent volume for a small stock

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aiss&draw.x=0&draw.y=0

[A J]

Horay!:D

Still maybe perhaps a bit of a down going to come with the end of year financial statement but overall things looking good. Am sitting happy.

Cheers
Aaron

[Flying Goat]

If you still sitting back and waiting to buy ISS on the cheap I would not be too optimistic. Looks about set to pop tomorrow, my guess is that 50 cents will replace 30 cents as the new support hence my comments earlier about why buying and holding this stock is probably smarter and less risky than trying to guess its every move.... :)

[tommy]

quote:Originally posted by Flying Goat

If you still sitting back and waiting to buy ISS on the cheap I would not be too optimistic. Looks about set to pop tomorrow, my guess is that 50 cents will replace 30 cents as the new support hence my comments earlier about why buying and holding this stock is probably smarter and less risky than trying to guess its every move.... :)


Hi FG,

And don't forget those cheapo options ISSO[:p][:p]

[Flying Goat]

Hi Tommy,

This is a dumb question but I have never bought listd options before, tell me, if you buy ISS options at say 10cents with exercise price of 50 cents (which are about what they are from memory), do you pay the 50 cents on top of the 10 cents you paid for the options, i.e. 60 cents?

If so it is a hard call for me but one i am thinking about to gain additional exposure in the event this REALLY pops...

FG

[Ricky99]

yes thats right, but you don't need to pay the 50c until Oct next year from memory.

[tommy]

Hi FG,

Options expire in Sep 30 08:) Bought mine at 5 cents a while back so I have pretty decent exposure, hehehe[:p]

If you buy options though, remember they are always more illiquid and harder to get rid of in the event of a downturn (greater risk) not to mention the limitation due to the expiry date.

Upside it is a cheapo way to get shares. Assuming that ISS can generate a decent first half result next fiscal year, it may not be too late to get the options. ISS won't be having a good result this full-year so when the stock tanks a bit then, you might have a chance to get them cheaper than it is now, but don't count on me[}:)]

[tommy]

ISS skyrocketing now on massive volume, WTF?!

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aiss&draw.x=0&draw.y=0

ISSO also up, is that you buying FG? My ISSO is a 4 bagger now in paper... and I am wetting my pants[:p][:p]

Is this price movement in reaction to the recent announcement of British Gas or something else? Considering it had not dollar value attached to the orders (disclosure please!), I wonder whether there is a lot of speculation going on.

In any case, I am not complaining:D

[trader-jim]

quote:[i]

And don't forget those cheapo options ISSO[:p][:p]


Thanks for mentioning ISSO, bought a few yesterday for 11c now at 20c, low volumes but with share price up as well on good volume there must be something coming up.

[tommy]

quote:Originally posted by trader-jim


quote:[i]

And don't forget those cheapo options ISSO[:p][:p]


Thanks for mentioning ISSO, bought a few yesterday for 11c now at 20c, low volumes but with share price up as well on good volume there must be something coming up.


Hi trader-jim,

No worries mate, welcome to da options club[8D]

Somethings gotta be brewing, today's volume is extraordinary for a small cap like ISS. What a ride[:p][:p][:p]

[ONTHENOSE]

hi guys,

After the last update should we still be expecting a Loss or Break even for the FY??

For ISS to move like this something must be up.. Someone is in the know IMO... I like it...[8D][:p]

[tommy]

Hi Onthenose,

Don't expect too much for the full-year at this point, I'm expecting it will be a very boring result.

But first half 2008 should be a lot better due to sales/orders coming in from overseas branches thanx to the addition of new blue-chip clients on top of its already impressive list of multinational mining/energy companies.

The turnover over the last few days is quite amazing, I was expecting the gaps to be filled but kept opening at higher prices that the previous day's closing price:

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aiss&draw.x=0&draw.y=0

I also wonder what "ongoing work with Saudi Aramco" is? (latest announcement)

One big contract with any of these big boys and ISS will see blue sky[:p] IMHO, it is not a matter of IF but WHEN... hopefully in the next 12 months when their overseas sales force start raking it in!

[Flying Goat]

quote:

ISSO also up, is that you buying FG?



Hi Tommy,

No that was not me, at 14 cents making shares 64 cents looked too expensive given that I don't know what this mother of all uptrends is about, you know me I prefer to buy on the downwards spikes rather than the upward ones :D Anyhow my exposure is to ISS is decent enough to make me quite a bit (imagine I am in top 20 holders). Bought something else tech today but am still watching closely, researching and trying to get in will post more later in the week on that. On ISS, tommy do you think that maybe there is some kind of takeover spec? Personally I doubt it becuase as we know Shane Atwell and his partner hold around 30% (used to be 40% but dilution through cap raising last year and 2 drps would have brought this down quite a bit) without them it would be a no go, personally don't think he would consider selling anyway - as the company is at the early stages of its life cycle and IMO has a long period of sustained growth ahead of it... lets say FY08 NPAT $3M, FY09 NPAT $4M, FY10 NPAT $5M on PE20 would be a company worth more than double what it is today. I certainlly wouldn't be a seller!

Cheers.
FG

[tommy]

Hi FG,

Yeah, thought about the takeover scenario but think it is unlikely unless some crazy nut launches a hostile TOB!

I surely would be one PXXXed off shareholder if they sold this puppy before it takes off like a space shuttle.

It is easy to get excited when the share price goes up like this after a not so clear-cut announcement of new clients (no dollar figures on the orders man, come on!)

Let me try to give a few stabs in the dark, here are some possible scenarios:

(1) Won't be surprised if another company decides to buy a stake in ISS.
(a) Especially one of their clients who might want more say in their product development. ISS is peanuts compared to their gigantic clients, or
(b) Another bigger software firm decides to take a stake in ISS.

(2) ISS takes over another firm.

(3) ISS hires a new sales rep/agent for further international rollout.

(4) ISS decides to set up an office in China. (yeah, get on da yumcha bandwagon!)

(5) ISS wins a massive contract from Saudi Aramco (now we are talking real business here and that is what I want to happen!)

(6) [ _________________________________________] (Use this space freely to jot down your ideas, hehehe)

Anyway, my position is: when the stock is running, let it run, but when it starts to fall, lock in your profits (sell some of your shares). You can always buy back if the picture becomes clearer and positive outlook is confirmed:)

Enjoy da ride
[:p]

P.S. What tech did you buy today? My current favorites are ISS, UXC, ASZ, ADA and BLU (note: I hold all of these)

[Flying Goat]

Okay... here go my best guesses:

6) We know that aside form the announced contracts there is still a large pipeline of contracts in all regions, my guess is perhaps there has been more signing on the dotted line with some biggies.

7) The holy grail, a contract with Saudi Aramco (and their 10,000 old and gas wells!!!)

8) Just all those who have been sitting on the sidelines watching ISS, perhaps decided that this was the last stop so decided to buy at once! Popular Delusions and the Madness of Crowds :D

Other than that have nooooo clue, but am curious as always.....


FG

[tommy]

quote:Originally posted by Flying Goat


7) The holy grail, a contract with Saudi Aramco (and their 10,000 old and gas wells!!!)


Hi FG,

hey my (5) and your (7) happens to be the same so this must be it! hahaha, dream on, wouldn't that be a nice end-of-da-financial-year present[:o)]

Any of the above will do really, as long as it keeps on boosting the share price.

http://asx.netquote.com.au/charts.asp?code=iss&x=0&y=0

[Ricky99]

would have to be a big contract with $ ammounts attached (or easily worked out)

[rotweiller]

Recouped my initial outlay today at 55 cents, and still a goodly ammount for long term hold. A happy Chappie who is somewhat puzzled by the price developments but certainly not losing any sleep.
Cheers

[rotweiller]

TRADING HALT announced until start of trading Monday, July 2nd at latest pending an announcement, which will answer all the questions hopefully.
Cheers

[Flying Goat]

Hi All,

Let the floor be open for speculation......

I have changed my tack, who would be willing to buy so many shares at such a high price on the basis of one contract?? We have known for ages that they have many contracts in the wings and that they have signed blue chips on four continents already, so why the sudden price action.

I am starting to entertain the idea of a hostile takeover. Think about it, a while back (think it was Steve Flemming) posted an article about Mincom (ISS competitor) being taken over at a 100% premium. This buying has been super confident, all off the rank - no significant orders in the depth, as Tommy says SOMEONE has been gobbling up pretty much everything that came up for sale....

Seems odd though that the response to price query said there was nothing up, yet then there is also a trading halt, all very odd. No doubt there is some negotiating going on but whether that is of contract pricing nature or takeover will be for us to mull over until Monday i guess.

FG

[lakeys]

that someone that has been buying didnt have ago at my 77k that i put on the market late yesterday at 59c and withdrew after the anounment.
Some knows something?

[tommy]

Hi FG,

The fact that they said "I don't know why the price increase" to ASX query doesn't mean there isn't something going on at ISS, recently Jumbo (JUM) acquired a software house and the price shot up before the announcement, happens all the time with small caps where information can leak from somewhere. Obviously this buying is done by someone who KNOWS something that we don't.

As for the hostile TOB scenario, I don't think anyone would make it so bleeding obvious... first, you would want to accumulate slowly without pushing up the price in such a short period of time. You want to buy the company as cheap as possible, so spiking the trading volume in a short timespan just does not seem like a logical thing to do. And hostile takeovers are a double edge sword really... because there is always the road to management buyout (MBO), or, if things go really sour, resort to da poison pill (issue new shares and options like there is no tomorrow to massively dilute the potential acquirier's holdings!) And surely a white knight or two would be happy to snap up ISS on more amicable terms.

My thoughts, but hey, as long as da price is going up, I am loving every moment of this:)

[Flying Goat]

Hi Tommy

You might be right, it would indeed be foolish. The other poss for the trading halt could be a capital raising (although who would be getting so excited about that?!) - certainly hope there are no further shares planned for issue as that would put real brake on ten-bagger potential!

FG

[tommy]

What da... is that all?

29 June 2007
ISS Group Contracted to Supply Software Products to Fortescue Metals Group Ltd.


PERTH, Western Australia #8211; ISS Group Limited (ASX: ISS) is pleased to announce it has been contracted to supply Product Licences for BabelFish and Operational Application products to Fortescue Metals Group Ltd (FMG).

The Product component of the first phase has an estimated value to ISS of approximately A$650,000 and should be implemented over a 9 month period starting June 2007 with maintenance fees over a further two year period. A more significant services order from a third party is anticipated, but not finalised as yet for the design, implementation and configuration of the ISS products.

Announcing the contract, Managing Director, Shane Attwell commented; �gISS has invested heavily in developing our presence in the minerals market. Our investment, as in the oil and gas sector, is beginning to pay dividends with this project and the previously announced Rio Tinto Iron Ore rollout of our systems. We expect to make further in-roads in the minerals sector over the next 12 months.

We are looking forward to working closely with FMG to assist in the realisation of this dynamic Western Australian project.�h

About Fortescue Metals Group Ltd:
Fortescue is the New Force in Iron Ore with over 2.4 billion tonnes of Resources, including 1.1 billion tonnes of Reserves already delineated from less than 10% of its 38,000 square kilometres of tenements, the largest in the Pilbara.

ISS Group Limited
1ST FLOOR, 117 STIRLING HWY NEDLANDS,
PERTH AUSTRALIA 6009
PO BOX 1107 NEDLANDS WA 6909
PH: + 618 9386 0800 FAX: +618 9386 5941
E MAIL ISS@ISSGROUP.COM.AU
WEB: WWW.ISSGROUP.COM.AU
ACN 109 443 852
The company is developing The Pilbara Iron Ore and Infrastructure Project and will commence shipping ore from Port Hedland in the second quarter of 2008. The initial plans are to sell 45 million tonnes of iron ore per annum, expanding as the market dictates.
About ISS Group Ltd:
ISS Group Ltd. listed on the ASX in 2004. ISS was established in 1995 and is an information and technology company that develops and markets infrastructure and application software for the oil, gas and mineral processing industries. ISS has offices in Australia, US, Europe and Asia.
Visit the ISS Web site at www.issgroup.com.au for more information.
For further information, please contact:
Ms Rebecca Spyker
Communications Manager
ISS Group Ltd.
Ph. +61 08 9386 0800
Email: Rebecca.spyker@issgroup.com.au

[tommy]

ISS tanks 6% on close, not surprised. Sold half, happy with taking profits at this stage but still hanging on to those options.

Note that "A more significant services order from a third party is anticipated, but not finalised as yet for the design, implementation and configuration of the ISS products."

Perhaps this is da one we are hoping for?

[Flying Goat]

Yeah, seemed like rather insignificant news in the scheme of things, how very odd that it had such a dramatic break out, I thought the previous announcement of the global roll-out for British Gas, and new industry verticals were more significant - yet market barely reacted to those??

Oh well... thats the market for you!

[tommy]

quote:Originally posted by Flying Goat

Yeah, seemed like rather insignificant news in the scheme of things, how very odd that it had such a dramatic break out, I thought the previous announcement of the global roll-out for British Gas, and new industry verticals were more significant - yet market barely reacted to those??

Oh well... thats the market for you!



Hi FG,

Yeah, what puzzles me the most is why this announcement deserved a "trading halt" in the first place. It doesn't explain the massive turnover of late either, if someone in the "know" was expecting this announcement, he/she would have known it wouldn't boost ISS share price that much (if at all).

British Gas related announcement was far more significant.

I am wondering whether there is another announcement pending??

The market certainly doesn't make sense, but oh well, sometimes you make money out of thin air[}:)]

[rotweiller]

And I am still a very Happy Chappie
Cheers

[steve fleming]

quote:Originally posted by tommy


quote:Originally posted by Flying Goat

Yeah, seemed like rather insignificant news in the scheme of things, how very odd that it had such a dramatic break out, I thought the previous announcement of the global roll-out for British Gas, and new industry verticals were more significant - yet market barely reacted to those??

Oh well... thats the market for you!



Hi FG,

Yeah, what puzzles me the most is why this announcement deserved a "trading halt" in the first place. It doesn't explain the massive turnover of late either, if someone in the "know" was expecting this announcement, he/she would have known it wouldn't boost ISS share price that much (if at all).

British Gas related announcement was far more significant.

I am wondering whether there is another announcement pending??

The market certainly doesn't make sense, but oh well, sometimes you make money out of thin air[}:)]




Hi Tommy/FG

As much as I like the ISS story, their handling of market disclosures over the last couple of days has been really amateurish.

It seems like the "significant services order" referred to yesterday, and most likely the real reason for the TH, couldn't be finalised as ISS expected.
So ISS probably thought they better release some sort of news to placify the market, thus release details about the FMG deal.

Still lots of good news to come, its just that ISS aren't doing themselves any favours in terms of establishing market credibility amongst sophisticated investors....not that it matters that much, i guess, as the sp continues to increase!

[bear]

quote:Originally posted by rotweiller

And I am still a very Happy Chappie
Cheers


bear not happy ....:( sold out way too early ... must learn patience ... can't even think of the reason i sold...

[tommy]

quote:Originally posted by steve fleming
Hi Tommy/FG

As much as I like the ISS story, their handling of market disclosures over the last couple of days has been really amateurish.

It seems like the "significant services order" referred to yesterday, and most likely the real reason for the TH, couldn't be finalised as ISS expected.
So ISS probably thought they better release some sort of news to placify the market, thus release details about the FMG deal.

Still lots of good news to come, its just that ISS aren't doing themselves any favours in terms of establishing market credibility amongst sophisticated investors....not that it matters that much, i guess, as the sp continues to increase!


Hi Steve,

Totally agree with you that ISS completely stuffed up their announcement this time. Going into trading halt and then responding to ASX query that "nothing is going on as far as they are concerned" are completly contradictory. It would have been better if they had just said that the previous announcement had spiked interest rather than releasing that minor contract announcement. However, I still suspect that this is not the end of the story and another announcement may be in da pipeworks.

Problem about many small cap companies is that investors are not provided with necessary info in a timely manner, which makes them riskier than they really should be.

But I suppose that is why I invest in them... and readily collect profits without hesitation when the price surges and sell them off by using a stop loss if they fall below my tolerance limit because of the inherent illiquidity of small caps.

Anyway, I think ISS will be well positioned for FY2008 from the sound of new contracts and ongoing work. Looks like it will become a great trading stock in the coming months;) The fact that listed options are available (ISSO) also make this stock attractive, giving more exposure & leverage:D

BTW, Steve, are you still interested in FSA? I still hold and thought the latest Westpac facility announcement was absolutely brilliant but market totally ignored it... is there anything in the industry that I don't know about? Your views will be highly appreciated mate, as always!

[steve fleming]

Hi Tommy,

Agree, even with a current market cap @ $40m, ISS still has some serious upside...its only going to take an annoucenment of a large Saudi Aramco deal to make the current sp levels history.

MAte- re FSA will comment on that thread! cheers

[steve fleming]

quote:Originally posted by steve fleming



Agree, even with a current market cap @ $40m, ISS still has some serious upside...its only going to take an annoucenment of a large Saudi Aramco deal to make the current sp levels history.



So ISS secures a $300k contract for 380 wells - say $1k per well.

"With a current operating asset base in the region of over 10,000 wells, Saudi Aramco is the largest oil producer in the world."

Therefore Saudi Aramco could potentially be worth $10m+ to ISS, with most of it profit.

[tommy]

Hi Steve,

Yeah, ISS now officially a SaudiAramco partner! More contracts should follow suit, plus ongoing maintenance stuff leading to more recurring revenue, resulting in less reliance on lumpy one-off contract income.

May see some volatility in the stock price though when full year results are out... though a good company update should make shareholders more comfortable about the prospects in FY2008.
___

Saudi Aramco exercises option for BabelFish software

PERTH, WA #8211; ISS Group Limited (ASX: ISS) is pleased to announce that through its Middle East partner Naizak, it has received an order for the BabelFish product from Saudi Aramco, one of the world�fs largest oil producers. The order follows the successful completion of the pilot of BabelFish on the iField project.

With the initial roll-out across approximately 380 wells, Saudi Aramco will utilise this software to monitor well performance in real-time. The system enables the engineers to monitor large numbers of wells in a single view. Non performing assets are automatically brought to the attention of engineers rather than them having to wade through masses of data. ISS is continuing to work with Aramco to further enhance this
system.

�gEven though the incremental order value is small, in the order of A$300,000, this is another significant international achievement for the ISS Group�h says ISS Group�fs Asian/Middle East Managing Director Mr Richard Pang. �gBabelFish will provide Saudi Aramco with a capability to integrate and monitor the performance of their wells in realtime over the web. ISS has been working with Saudi Aramco over the last two years to assist with the evaluation and suitability of the product. We are very pleased with the outcome.�h he added.

With a current operating asset base totalling in the thousands of wells, Saudi Aramco is one of the largest oil producers in the world.

[Flying Goat]

Yeah, Saudi contract small but one could safely assume it is just the start - would not however assume that this will be clean profit Steve, they are doing ongoing work on development for SA, and companies that size always drive a hard bargain - I'd hazard a guess and say they are wearing ongoing costs with SA. However what I like about the way that Shane Atwell runs this business (and the major difference between ISS and ITE) is that he prices for profit - i mean stands his ground so that contracts are not being done at a loss generally - add to that executive pay is very modest, as he is more concerned with bottom line as a 40% holder, as opposed to ITE where the execs are divvying up over $1m amongst themselves while dishing up a $4 million loss to the shareholders! I am quite excited about the prospects for ISS in new industry verticals actually. They have shown they can hit with the heavyweights in the oil/gas sector but if they can provide BI tools for even more mainstream industries then the sky is the limit for where we could be going with this, IMO.

FG

[tommy]

ISS up 10% again[:0]

SaudiAramco fueling interest or what! Options sell depth very thin...

[wns]

What's up? (aside from the share price)

Happily holding and glad I didn't sell around 26c only a few months ago.

[A J]

I'm just glad I topped up at .26 not long ago. (lowest buy in point .19).

Doing well indeed.....

Cheers
Aaron

[tommy]

Lodgement of Appendix 4C and Financial Results Update
PERTH, Western Australia #8211; ISS Group Limited (ASX: ISS) today lodged its Appendix 4C #8211; Quarterly Report.


The Company has again finished the quarter to 30 June 2007 in a strong cash position with net cash of $3.3 million. We expect this balance to grow considerably in the September quarter, both from normal operating activities and the likely conversion of approximately $5.5 million of unlisted options due to expire on 30 September 2007.

As noted in our release to the ASX on 30 May 2007, the Company advised it may experience delays in booking contract revenues due to the timing and receipt of impending orders. Accordingly, the operating cash flow for the quarter was a deficit of $178,000 (full year positive - $1.18 million). To counter this, the Company is pleased to note a record revenue month in June, with sales of approximately $1.6 million. This
should create a large positive operating cash flow in the September quarter as accounts receivable are collected.

The Company continues to reiterate its expectation of a strong 2008 financial year based on its order pipeline. Details of the Company�fs 2007 financial results will be released separately.

[A J]

1 August 2007


The Manager
Company Announcements
Australian Securities Exchange Limited
4th Floor
20 Bridge Street
SYDNEY NSW 2000

Dear Sir


Financial Results Update

PERTH, Western Australia – ISS Group Limited (ASX: ISS)

While the Company has not finalised its full year results at this time, the Board
indicated in its 30 May 2007 ASX release that it would provide shareholders with an
update on the likely profit position of the Company as soon as practical.

Accordingly and based on the unaudited management accounts to 30 June, the
Company is pleased to report that despite delays in major contract receipts, the
Company will report an operating profit before tax for the year in the order of $1.0
million on revenues up 20% on 2006 at $9.7 million. As noted, these figures are from
our management accounts and subject to change during the course of our annual
audit.

Mr Shane Attwell, Managing Director said; “While the reporting of a profit is pleasing,
the delays in receiving several large orders have dampened the 2007 result.
Notwithstanding this however, I am very pleased with the progress we have made in all
regions this year. We have a significant pipeline of work and prospective orders that wehave been working on in 2007, that we expect to come to fruition in 2008 and beyond”.

Mr. Attwell reiterated his confidence in the financial outlook for 2008; “We are very well
positioned with a number of existing and new major customers to make sizeable gains
in revenue and profitability in 2008 and generally over the medium to long term.” The
positive operating outlook, coupled with our strong cash backing will ensure we have
the right ingredients to build shareholder value over the medium to long term”.

Yours truly,


Shane Attwell
Chief Executive Officer
ISS Group Limited

[A J]

ISS sign Microsoft contract for Fortescue Metals Group Ltd (FMGL)

PERTH, Western Australia – ISS Group Limited (ASX: ISS) is pleased to announce the
receipt of the order from Microsoft, as project prime, for the implementation of the
Manufacturing Execution System (MES) solution for FMGL. The Microsoft services
order value is approximately A$3,000,000 A$750,000 of which has been invoiced to
date. This is in addition to the A$650,000 product license order with FMGL
announced on 29 June 2007.

This is a very significant order for ISS, given BabelFish will be integrated with the new
Microsoft Dynamics AX solution (Microsoft’s ERP). The BabelFish product will provide
bi-directional integration between the MES layer and the ERP layer.

In addition to the BabelFish integration and visualisation layer, the implementation
includes several ISS Minerals Solution applications, such as, operations reporting,
downtime recording, data validation, production reporting, condition monitoring, and
process visualisation.

BabelFish will integrate with Microsoft Dynamics AX by routing information to support
FMGL’s core business processes such as mine grade control, rail monitoring,
production planning, consumables management, stockpile management, fault
notification, operating statistics, product tracking and ship inventory management. The
integration will provide a seamless and consistent view of the operation to managers,
engineers, and operators across the process at both MES, and ERP levels, from pit to
customer.

Shane Attwell (ISS Managing Director) noted “we are very excited about working with
Microsoft / FMGL and being one of the MES vendors to be integrated with the
Microsoft Dynamics AX system. The recognition of the value of placing the BabelFish
Server as the integration engine between the process layer (plant, mine, rail, and port)
and the BizTalk / Dynamics ERP layer is confirmation of the advanced state of the
BabelFish technology. It is also good to see such a complete end to end
implementation of ISS’s Minerals Solution from pit to port.”

[tommy]

ISS making healthy recovering since the nosedive last week

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aiss&draw.x=0&draw.y=0

I don't hold any ISS anymore but still hanging on to those 5c ISSO from a while back.

[A J]

Don't hold options but hold my head shares still, right through this correction.

I actually like these sort've happenings if you like, teaches me a few things which I like. Just means I'll have to put that boat off for another month or two maybe??!!

Hopefully more up to come.

Cheers
A J

[_Michael]

Has anyone else read te Annual Report released last week?

Highlights include;

Revenue up 25%, profit down due to costs establishing offices in UK/US, both of which are closing deals and are budgeted to be profitable this FY

Blue Chips clients added include British Gas, Saudi Aramco and Fortescue Metals - mainly large contracts, (or beginnings of with the SA) with long term maintenance / license revenues (that run at 15% of contract values).

First successful integration with Microsoft's new ERP system, became certified partner company to Microsoft.

Entered new industry verticals significantly opening up the market potential.

Nearing end of intensive R/D phase, most costs expensed already and FY08 set to have significantly lower R/D expenses.

All in all continues to be, in my opinion a very exciting story and a business that is set to grow big time on the international stage - still amazed that not one broker is covering this company - in the AFR Smart Investor magazine it has never been mentioned, yet has achieved so much more that many of the slack companies that have get articles / coverage etc. On the other hand if it had been noticed a long time ago then we wouldn't have been able to buy below 20 cents last year - this could easily grow ten fold from where it is now as they gain traction in international markets and maintain disciplined management and cost controls - but more likely will be bought out long before they get the chance....


M

[tommy]

Hi michael,

My thoughts of the annual report were that no new information was released in it, everything in there had already been out there. A bit weird that they did NOT comment on any of the contracts they had been expecting in the previous second half??? I'm happy to continue holding ISSO but it wasn't enough to spur me picking up ISS again.

[A J]

Am happy things are ticking up again, however do agree with tommy. Want some news out on contracts etc to feel happy about things.

Cheers
Aaron

[tommy]

ISS Group Announces Capital Return

PERTH, WA – ISS Group Limited (ASX: ISS) is pleased to announce its intention to
provide all shareholders with a capital return of 6 cents per share, subject to the
approval of the plan by shareholders at a general meeting to be held on or around 16
November 2007.

Following the successful take up of unlisted options at 30 September 2007, the
company has significant cash reserves above its operating requirements. The board
has proposed a tax free capital return of 6 cents per share in lieu of paying out a
partially franked dividend for this year. The capital return will have the effect of
reducing an ISS Group shareholder’s cost base by the amount of the capital return.

In addition, the ISSO listed options (30 September 2008, $0.50 exercise price) will be
favourably impacted by the capital return. These options will have their exercise price
reduced by the amount of the capital return from 50 cents to 44 cents per option.
The capital return will reduce ISS cash by a total of $5,943,184 assuming no further
options are exercised prior to the entitlement date, expected to be on or around 23
November 2007, with a payment date of 30 November 2007.

The board is satisfied that the capital reduction will not have any negative impact on
the company’s ability to continue funding or growing its business.

The proforma working capital position of the Company at 30 September 2007, based
on unaudited management accounts is as follows:

ISS Group Limited
117 STIRLING HWY NEDLANDS,
PERTH AUSTRALIA 6009
PH: + 618 9386 0800 FAX: +618 9386 5941
WEB: WWW.ISSGROUP.COM.AU
ACN 109 443 852
Before
Capital
Return
After
Capital
Return
Cash at bank (at 4 Oct 2007) 9.0M 3.0M
Receivables(at 4 Oct 2007) 2.4m 2.4M
Total liabilities 1.4M 1.4M
Net working capital 10.0M 4.0M

The Company will shortly be forwarding shareholder meeting details together with the
actual timetable for the capital return to all shareholders.

[tommy]

ISS now on the way up again! 6c capital return seems to be too juicy for greedy punters...

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aiss&draw.x=0&draw.y=0

OMFG, my 5c ISS options are back to life again!

Now that the new exercise price is 44c, we are in da money...

[_Michael]

Hi Tommy,

Yeah - my opinion it was on one hand a good announcement in that it signaled confidence in their ability to grow this business without chewing through capital - which is probably one of my favourite traits when looking at growth stocks.

On the hand it was also another clumsy display of raising capital - only to give it back to shareholders (the issue that caused a great debate on ShareTrader when they did a share purchase plan then paid a dividend!).

Then again the original options were engineered long ago so I suppose they couldn't have known that they would be in such a comfortable financial position this early on in the global roll out... I suppose.


Mike

[_Michael]

Good work on the options by the way Tommy.

My exposure is direct but with two dividends already received and an extra six cents on the way -my holding cost is down near 12 cents so this development sees ISS approaching 5 - bagger through in less than twelve months...:D

[tommy]

hi Mike,

Yeah, when they did the capital raising after the dividend payment, that was totally incomprehensible... and now they want to give it back to us? I hope they don't decide "damn, we need some capital now, let's issue more shares" in 3 months time!

In the meantime, what happened to the delayed contracts? I hope they haven't slipped through their fingers...

[_Michael]

Hi Tommy,

Decent new contract announced to the ASX this week (15/11/2007) is definitely the most significant one to come out of ISS Group Asia office adding BP Indonesia to their client list with an AU $1,000,000 contract for BabelFish and an Oil/Gas application suite to be used for Hydrocarbon Accounting...

M

[_Michael]

I was happy to get a decent sized (five digit!) cheque in the mail from ISS last week as a result of their capital return - you've got to love companies that have and generate more cash than they need! Is anybody else still aboard?

Am glad that i've stuck with them through the down times as it can be boring and illiquid at times, but have immense potential as their reputation builds and they grow their worldwide license revenues, as they grow their customer base and industry applications...

[FarmerGeorge]

Hi Michael I agree it sure is nice to get a big fat cheque in the mail (although I think you might have more in ISS than me by the sounds of things). I originally bought in around 20c then out around 50c but I bought back in after the capital return was announced at about 51c figuring the return would be more than 10% and fairly easy money. SP now back above my latest buy in, not sure about how to proceed from here.

[_Michael]

Nice moves FarmerGeorge! My strategy with ISS has been to sit tight. The thing is, if you look at all the big rallies they've been driven by major contract news - which there is no way of picking. My take is that the 12 months have added a number of behemoth clients to the list such as Saudi Aramco, Fortescue, BP etc as well as lots of smaller clients that don't warrant market announcement (below $1m). This sends a good message for the future earnings becuase their business model is that each year after the sale they recieve 15% of the contract value in support/license/etc fees. Given the high costs (therefore barriers) to switching the clients are likely to stay with ISS for many years to come - so earnings visiblity is good. Not to try and sound too bullish but to add to that the big fish like Saudi have hardly scratched the surface in terms of what they could spend with ISS and may spend in future. In addition all the names being added to their client list, like those above, plus British Gas, plus new industry verticals approaching them to my thinking does wonders for building brand equity and enhancing their reputation as a credible software developer... if you think about the size of their potential markets and their growing reputation I see it as a slow road, but a steady road to builing a company that could one day be worth, north of $200m to $300m.

[A J]

Hey Absolute!

Yep, am still holding. Got my Cheque in the mail 3 or so days back, which was nice! :)

I asked if they could cancel my cheque and pay by EFT as it takes 21 working days to clear by cheque. Stuart Usher (ISS secretary) said this:

"Aaron, I'm sorry the Company is not facilitating this method of payment.
If you have informed the share registry of your bank details I am
advised that next time the Company makes a payment that EFT will be
used."

So next time then, is a long wait. Sighh......

Hopefully ISS will get back up a bit?

Cheers
Aaron

[FarmerGeorge]

This announcement should see some movement from ISS, can anyone estimate what this BHP contract is worth to the company? Seems a very positive sign IMHO

[_Michael]

Hi George

not sure but it goes to cement what i was saying about existing customers spending more, by rolling out tonew sites... (they have not yet scratched the surface at most of the biggies like Suadi Aramco, Rio Tinto etc) and also the length of the contracts (i.e. todays announcement stated that the inclusion of a 4 year maintenence and support contract). Its also an encouraging signal with regards to the quality of the products - as both BHP and RIO have been rolling out to new sites after using for a decent period of time suggesting their ROI and satisfaction is strong....

cheers
Michael

[tommy]

Results out! NPAT only 36% up? What da?


Revenue of $7.3 million up 51 %

Operating profit before tax and non cash share based payments of $1.7million up 135 %

Net profit after income tax of $787,286 up 36%

Actual cash net profit after tax adjusted for non cash share base payments expensed was a
record $1.2 million.

November 2007 AUD 6 cent capital return per share issued, providing a tax effective return in
the order of 15%

Working capital reserves increased $1.0 million to $6.0 million

The Group is maintaining a positive outlook for the balance of 2008 and beyond with increased
inquiry levels for the Group’s products globally.

[_Michael]

Hi Tommy

Revenue up 51%, npat up by only 36% but note they expensed through p&l:

Research & Development $1.3m
UK Office Establishment $0.2m
Non-cash share based expense $0.4m

The thing is building a decent sized and sustainable business takes time.

Im happy enough with the progress, international offices should contribute more from now on.

[tommy]

Hi Michael,

Cheers mate, hadn't flicked through the whole report :-P

We haven't had any new contract announcements lately so hopefully their expenditure will translate into new contracts internationally. I hope my options don't expire before ISS announces anything exciting (still holding).

[_Michael]

Today ISS announced the largest deal they have ever made - this one out of Asia office to petrol behemoth Pertronas - $4m excluding support ongoing maintence etc.

Given these guys are high margin and not capital guzzlers am ooking forward to see what they will do with the surplus cash - once again!!

[_Michael]

28 April 2008



The Manager
Company Announcements
Australian Securities Exchange Limited
4th Floor, 20 Bridge Street SYDNEY NSW 2000


Dear Sir

LODGEMENT OF APPENDIX 4C, Q3 - 31 MARCH 2008
ISS Group Limited (ISS) is pleased to provide its cash report for the third quarter
ended 31 March 2008.

The Group completed the 3rd quarter with cash funds of $4.3 million representing an increase in cash of $900,000 on the previous quarter.

Operating cash flow was positive $1.0 million for the quarter, with year to date
positive cash flow of $1.4 million.

The above results have been achieved prior to the recently announced AUD $4
million contract with Kuala Lumpur based, Petronas Carigali SDN BHD.

Managing Director, Mr. Shane Atwell said the Group was performing to his and
the board's expectations and continued to be in a very sound financial position
with all country operations reporting strong levels of activity and inquiry for
services.


Yours truly,

Shane Attwell
Managing Director

[_Michael]

ISS still trucking with year to date receipts of >$10 and for the quarter $4m excluding the latest and largest contract.

Each of the business units still growing strong.

[metal mickey]

trading halt pending completion and announcement of material contract. cool, another 4 million $ one ?

[tommy]

Gee, I had forgotten about ISS options in my portfolio as they haven't announced any juicy news for such a long time, lol

[_Michael]

Sweet news, another material contract on the way.

This little business still has the potential to be big, slowly but surely imo....

[tommy]

27 May 2008

ISS GROUP ANNOUNCES UPSTREAM OIL AND GAS AGREEMENT WITH
SCHLUMBERGER

ISS Group Limited (ASX:ISS) is pleased to announce it has signed an agreement with the world’s leading oilfield services company, Schlumberger. The contract, with guaranteed payments of approximately AUD$17 million, phased over several years, grants Schlumberger exclusive rights to market ISS’s BabelFish™ in the upstream oil and gas industry. Revenue to ISS is likely to exceed this initial figure as ISS will also receive maintenance annuities on the Schlumberger sales, and revenues on sales receipts above initial license pre-purchases.
Schlumberger has a world-class deployment network for digital oil field solutions and service
operations that optimise reservoir performance for customers. The agreement will leverage ISS Group’s production integration software, BabelFish, alongside Schlumberger’s current technology for upstream production data management, surveillance, analysis and modelling.
Mr Shane Attwell, Managing Director of ISS Group, said “We are delighted to be a part of this significant agreement. It combines the advanced BabelFish visualisation and operations solution with the Schlumberger global sales force and service capability to deliver a unique value proposition to oil and gas operators wishing to take the next steps to asset management within the digital oil field.”

"The ISS Group technologies complement the Schlumberger Information Solutions (SIS)
production operations offering and expand our ability to deliver digital oil field solutions,” said Tony Bowman, President, Schlumberger Information Solutions. “In combination with our Avocet production data management, surveillance, analysis and modelling solutions, the BabelFish webbased visualisation framework will give production engineers and managers immediate access toactionable information - to proactively monitor and make adjustments to operations systems."

Mr Attwell highlighted that, “The agreement with Schlumberger applies only to the upstream oil and gas industry. It does not affect the ISS software and services provided to industries such as midstream and downstream Oil and Gas, Refining, Minerals, Chemicals, Energy, Manufacturing and Power. These industries will also benefit as a result of the increased research and development commitment by ISS to provide all customers with innovative market leading technologies.”

Mr Attwell further commented that “ISS Group is gaining a significant foothold in a number of industries and applications. The agreement allows ISS to benefit from Schlumberger’s global sales resources, while continuing to strengthen its own position in mining and minerals, downstream oil and gas and the broader manufacturing sector, which has enormous latent potential for BabelFish applications.” With recent significant contract wins in oil and gas as previously announced, the agreement with Schlumberger continues to validate the great potential of the BabelFish product suite on a global basis.

[_Michael]

Sydney, May 27, 2008

(RWE Aust Business News)

ISS Group Limited (ASX:ISS) has signed an agreement with the oilfield services company, Schlumberger.

The contract, with guaranteed payments of approximately $17 million, phased over several years, grants Schlumberger exclusive rights to market BabelFish in the upstream oil and gas industry.

Revenue to ISS is likely to exceed this initial figure as ISS will also receive maintenance annuities on the Schlumberger sales, and revenues on sales receipts above initial license pre-purchases.

Schlumberger has a deployment network for digital oil field solutions and service operations that optimise reservoir performance for customers.

The agreement will leverage BabelFish alongside Schlumberger's current technology for upstream production data management, surveillance, analysis and modelling.

[_Michael]

This is huge news. Rather gob-smacked that they signed a $17m + deal that leaves all the others behind and paves the way forward for a bright future, in the right industry!

[Bobbyvee]

More good news from ISS:

ISS GROUP Expands into the Food & Beverage vertical targeting global markets.
ISS Group Limited (ASX : ISS) is pleased to announce it has been awarded a contract
for “Provision of a Real Time Integrated Plant Reporting Solution”, utilising ISS Group’s
BabelFish™ and associated modules, by Mars SnackFood Ballarat operations, a
subsidiary of Mars Inc, one of the world’s largest fully-integrated food & beverage
corporations.
In commenting on this milestone contract for ISS Group, Mr Grant Eggleton, Global
Business Development Manager said, “We are delighted with the award of a contract
from such a major global food manufacturing organisation. It is a very significant
addition to our traditional resource based markets. It demonstrates the versatility of
BabelFish in addressing information management requirements in other verticals.”
Mr Shane Attwell Managing Director of ISS Group added “We have been marketing this
new area to assess the viability and potential for our products in the manufacturing
verticals. An order with such a major food group confirms that this segment is a
significant global expansion opportunity for the Group.”
“This is a strategic extension of BabelFish™ into the complex data management faced
by major high volume manufacturing organisations. The profile of ISS Group
internationally, and BabelFish™ products in particular, continues to be enhanced by the
quality of major contract awards such as this, and the previously announced contracts
with Schlumberger, Saudi Aramco, Rio Tinto, FMG, BHP Billiton, BP Indonesia and BG
Group”.

[_Michael]

Yeah - this has been one company that just goes from strength to strength despite the awful economic backdrop.

Look forward to seeing what they will do with all that cash from balance sheet, operations and options that should strike September.

[underground]

broker presentation out...

this is the gift that keeps on giving.. for those who were following this thread and bought in around 21c like i did..

you would have got 8c back already.

the company forecasts to give back another 15c by the end of next year...

that means by next year you will be free carried and have a triple bagger. i think that makes it an effective 4 bagger.

congratulations to holders, the integrity of this company is unquestionable.

im glad i bought in when i did..

[Bobbyvee]

Well done Underground. I did not get in quite as early as you but nevertheless very rewarding. Do you have information on the Broker Presentation you mentioned?

[Bobbyvee]

Oh sorry I guess you are just referring to the ISS presentation for Brokers, not one by a Broker

[_Michael]

NPAT forecast included
more than $3m this year,
more than $5m next year
more than $8m in 2010

I think the presentation today will spark insto interest from herein.

I hold since mid 2006 and will definitely have recovered full purchase price in dividends and capital returns by 2010 on the basis of todays presentation.

The best part, despite all the cash getting thrown back at us they are still growing the business gangbusters and will still have massive cash reserves!

Happy times for the patient right here....

[underground]

went up to 67c today before settling down..

out of curiousity what price would you all sell at if you wanted out today?

im thinking of reducing some of my holdings..

[_Michael]

underground,

Asked myself the same question a while back when the stock soared around time of the Fortescue contract, I did not sell then and considered that a mistake watching her sink to 30 cents or so no that long ago.

However, knowing what I know now am definitely glad to have held. The news out yesterday was well above and beyond what I expected they would be able to achieve this decade.

You will be 25% of the current market price back in cash over the next few years so while the cash flow return is better than money in the bank you are also holding a well run growth company with great prospects, cash coming out its ears and decent p/e.

For those reasons I genuinely would be unlikely to sell this year below $2.00 or so.

Then again I am in no hurry.

M

[Bobbyvee]

One should never fall in love with a stock.......... but gee how good is ISS! In this current difficult market they continually accumulate cash and are growing the business both vertically and horizontally. Further, what a wonderful product that you can sell to all of the mining, oil and manufacturing industries and you are not subject to any significant blow-out in in your cost side. The only downside is the lowish volumes traded, but that may change too.

[Bobbyvee]

ISS Group is pleased to report a very significant increase in both revenue and profit over the last financial year reflecting strong growth in our products and services across the globe. A higher than forecast operating profit has increased 423% to $5.4 million (before non cash and share based expenses and tax) (2007 - $1 million). Significant contributions to the results arose from major agreements concluded with Petronas, BG (formally British Gas), BHP Billiton and the upstream Oil & Gas marketing agreement with Schlumberger, the largest Oil & Gas service company in the world. An analysis of the operating profit compared to last year is provided below:

This year’s revenue increase of 89% to $ 18.8 million (2007: $9.9m) begins to reflect the global reputation that ISS is building as a provider of innovative products and services. The investment the company has made in the last four years in product and service development is yielding significant results and positions ISS as a true global player. Further, profit after tax is up by 301% to $ 3.8 million, reflecting the shift away from smaller services orientated contracts to larger corporate agreements with a higher licence component.

Over the last few years ISS has invested heavily in its overseas operations including Singapore, Europe and North America. While the last two entities are starting to develop market traction, our Singapore office has made significant inroads into the Asian and Middle East markets and as a result was a major contributor to this year’s excellent result. ISS has also invested in marketing outside of our traditional resource markets and received significant orders with companies in the manufacturing space such as Mars Snack Foods and semi conductor manufacturers. BabelFish is proving itself as a product that can
be utilised in many new verticals.

Understanding the need to continue our investment in our core products to ensure we remain competitive, ISS has increased its product research & Development by 158% on last year to a total of $3.1 million for 2008. This additional investment will see new product versions with innovative features being released in the coming year, further strengthening our position in the Resource sector, as well as other markets we are now developing. This spend also covers the bulk of the development cost for the new Geospatial extensions to BabelFish. Such investment opens the very significant exploration end of the resources market to ISS.

Looking forward, ISS Group will focus on supporting and developing its operations in the North American and European markets which we expect to move into positive figures in the coming year. We expect sales to continue the trend towards large multi million dollar deals with an increasing component of licence sales. We will also continue to work closely with Schlumberger, supporting them in selling our solutions in the Up-Stream Oil & Gas market beyond the initial commitments made by both parties.

The strong financial results this year have further contributed to the strength of our balance sheet. Cash reserves rose to $7.8 million (2007 - $3.3 million) and net working capital increased to positive $8.7 million from $5 million in 2007. As is our policy, there continues to be no requirement for external debt. The board is pleased to announce and declare a final dividend for the year of 1.75c per share fully franked (0.25 cents above guidance). This dividend will be paid on 31 October 2008 with a record date
for entitlements of 26 September 2008. In addition to the final dividend payment, the company has foreshadowed a capital return in the range of 8.5c -10.5c per share, to be paid out of the amount received from the exercising of the 30 September 2008 options. A determination of this amount will be made following the option expiry date.

[_Michael]

Wonder what date the second capital return will be, end of this year or start of next?

Am thinking that it would be nice to get a big cheque for re-investing into the current market.

[Snow Leopard]

Yesterday (due to time-zones it may not be yesterday where you are) ISS put out their half year result (http://stocknessmonster.com/news-item?S=ISS&E=ASX&N=481543) with an headline figure of $3.9M or 2.95cps.
However you may want to normalise that and perhaps call the underlying profit $2.15M or 1.60cps.

Given that this is kicking around the 22c mark and Shane and the crew reckon that they have themselves back on an even-keel then you may consider this worthy of further investigation and possible purchase.

One thing to be wary of at the moment is there appear to be [operational] cashflow negative, but hopefully they will get that sorted and they do have a few coins left in their piggy bank.

regards
Paper Tiger

[Lizard]

Finally got around to looking at this one again - actually don't think I ever got around to owning them (perhaps for a brief period? I can't actually recall.).

Anyway, seems they came well unglued from those mid-2008 forecasts posted by Michael. The risks of forecasting so far out in a bumpy, contractual-type business! Agree with PT that, at 21cps, they are looking interesting based on first half result. Cashflow was negative but there was plenty in the receivables column which should turn that around this half.

Still nervous of small tech companies relying heavily on contract income - would like to see another decent contract announced. At least they don't appear as vulnerable to forex as many Aussie software companies are - most of their revenue is within Australia. Will put it back on the watchlist.

[Snow Leopard]

So the advanced full year results (http://stocknessmonster.com/news-item?S=ISS&E=ASX&N=499647) are out and the headline is $4M3 and my guess at a more real profit is $2M33 or 1.7cps. [Compare with my thoughts on the half year two up]

Anyways the result saw a mad rush of $13,131 of smart money :ohmy: into the company lifting the price 20% from 15c to 18c yesterday.

At this point I have to admit that between posts I bought a few shares in this company despite the low turnover (what is the point of having self-imposed rules if you can't break them occasionally) and am now in the small profit zone. I live in hope that they will continue to improve their profitability (and that the cash flow looks OK when the actual result arrives) but would have no qualms about selling them and buying a rocking chair* with the proceeds.

regards
Paper Tiger

* Current one creaks if you lean it back a lot

[_Michael]

I follow as am holding for some 4 years now.

Over that time, despite seeing the share price rise to 60 cents at one stage before falling back down to my original entry price, they have done that many capital returns and dividends that for long-term holders the holding cost is pretty much zero.

The thing is with current $9m cash at bank and no debt, and most of the main R&D behind them, due to their business model being relatively low cost and high recurring income - my guess is there will be another capital return soon. If not then definitely they will resume dividends or (better yet) resume dividends and start buying some shares back.

I still think this is a very good company with solid organic growth prospects in many markets around the world - otherwise would not be holding on to them still.

Interested in others thoughts on what the best use of the $9m cash would be...:) Paper Tiger??

Mike

[Snow Leopard]

Over a year and a half since I last posted on ISS during which there has been much money to be made trading this. (Regrets, I have a few...)

Anyway they have announced the half year (http://stocknessmonster.com/news-item?S=ISS&E=ASX&N=578657) results and they are neat.

best wishes
Paper Tiger

Disc: Have more ISS shares than regrets. :confused:

[mark100]

It was a nice result. I picked up a few at 17 and 18c this morning.

HY EPS of 1.9c and a current share price of 19c is cheap, especially when they say the full impact of increased sales emphasis and pipeline will largely be felt during H2 FY12 and FY13

[Snow Leopard]

Well the full year is out and is rather disappointing :(.

Full year profit is less than half year.

Revenue is up, but if they have 130 employees to feed it better go up further still.

best wishes
Paper Tiger

[soulman]

Got a few today at 19. First quarter result was good and the presentation was good. No debt and forecast increasing earnings. Div yield very nice. Hard not to be impressed.

[soulman]

Got some more at 19. A no-brainer.