Ipstar Satellite's curious choice of Australian distributor

Stuart Corner
Tuesday, 27 November 2007 15:33

IT Industry - Deals

According to Shutes: "We will build on the network already established here by Ipstar to provide a reliable and affordable broadband service to regional Australia."

ETT presently has three operating subsidiaries:
- Ultimate Internet which, according to ETT "has established dominant market share and a viable and successful business model within the Australian hospitality channel." Its key product, PATLOC is a prepaid public access computer systems and broadband access service for hotels and other hospitality and leisure facilities.
- Ultimate Transactions has developed the new front and back end transactional software which has been licensed to Ultimate Internet Pty Ltd and Ultimate Axess Pty Ltd.
- Ultimate Axess designs, develops and markets interactive kiosks. public internet access solutions.

According to Ipstar, these businesses "will provide a significant contribution to the resources and operational needs of the Ipstar contract." To do this they will need to grow substantially. For the half year to 30 September 2007 ETT reported total revenues of just $303,578, little more than half the figure for the same period in 2006. After tax loss was up 131 percent to $4.45 million. However the bulk of this loss related to the acquisition, on 28 April 2006 of prepaid services from Bill Express. The loss from ordinary activities was $338,177.

Announcing these results, the company said: "The losses have partially caused the negative impact on the consolidated entity's cashflows and gives rise to a significant uncertainty regarding the ability of the consolidated entity to continue as a going concern and pay its debts as and when they fell due."