GEONG International revenues down

Chinese internet software firm, GEONG International, has reported that total revenues for the nine months ended December 31st were marginally lower than in the same period last year.

Revenues were around £7.6m, of which £2.8m was generated in the third quarter, a pro-rata increase of 17% over the £4.8m in the previous six months.

The 'software-as-a-service' (SaaS) business accounted for 21% of total revenue, or £1.6m, in the nine months, of which £0.5m, around the same level as in each of the previous three month periods, was generated in the three months to December 31st.

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At this date the amount due from customers was £17.3m, comprising £4.4m invoiced trade receivables and £12.9m of accrued income, down from £5.3m and £13.2m, respectively, as at September 30th.

In the nine month period, accrued income increased by £2.4m as a result of services provided which have not yet been

invoiced and reduced by £2.7m as a result of previously accrued income which has now been invoiced.

Total collections, including previously invoiced amounts, totalled £4.1m in the quarter to December 31st and the cash balance at that date was £6.1m.

"Investors should expect accrued income to continue to represent a relatively large proportion of amounts due from customers as this arises from our efforts to manage our cash flows most effectively," the firm said.

"We are pleased with the continued steady progress and, with a current order book of approximately £14m, is confident of a satisfactory outcome for the full year despite the onset of a less certain economic environment in China."

The share price fell 9.89% to 20.50p by 14:03.

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