I believe management re-iterated that those were all below 100 days. But since there is still over $100M in AR that is over 350 days - the average DSO will still be high till they are either written off or paid off. If you notice, none of the analysts downgraded their targets (or opinions) though they have all lowered their estimates for this year and next. There comes a time when the valuation more than takes into account the current business climate.
From this point on, Moukas was repeatedly questioned by Wall Street analysts on Velti's cash position.
But the company wanted to reassure investors on its guidance. It said in the DSO slideshow:
Reiterating Free cash flow by Q4 and operating cash flow positive by Q3. We are very confident on our execution.
That guidance would turn out to be wrong. Velti was having more difficulty collecting its bills, not less. One of Velti's vendors said in July, "I'm owed over $350,000 with over $250,000 that is late. ... I am now trying another debt collector (directrecovery), and we'll see what happens."
Velti turned out to not be "operating cash flow positive" in Q3 2012. Rather, it saw negative $5 million in operating cash flow.
Bailing out of Greece
That quarter, Q3 2012, Moukas began to come clean to investors about how much trouble his company was in. In a long statement, Moukas said, "We made a key decision in the quarter to divest certain assets associated with economically challenged geographies, including among others, Greece and the Balkan States. ... Quite a few of our customers in the regions where we are divesting assets are focusing on conserving cash above all else and therefore seem unwilling or unable to conform to our new payment requirements."
Basically, Velti was giving up on some of its deadbeat businesses in Europe. In a conference call with investors, Moukas admitted that some contracts had DSOs of up to 540 days — twice as long has Moukas' estimate in 2012.
But at the same time, Velti recorded only growing revenue: $62 million, up from $38 million the year before.
In other words, Velti appeared to be both growing and shrinking at the same time.
In Q1 2013, That contradiction was ended when the company admitted that in fact Velti was collapsing. Revenue was $41.0 million, a decrease of 21 percent from Q1 2012. The company stopped issuing guidance to Wall Street. And CFO Jeff Ross declined to talk in detail about how much