Australian press is tough, finds struggling Catuity
The Australian Financial Review used the once-lauded smart card company, Catuity, as an anti-Harvard Business Review case study. Citing the dismal condition of the company’s financials following the loss of major client Target and Visa, the publication focused on the unfortunate situation of too many eggs in too few baskets. The apparent insulation of the board of directors from removal despite the fact that, “in its six years as a listed entity it has yet to record a profit (with) losses over this period total(ing) nearly $30 million.”
Adds the article, “Target and its associated Visa Rewards smartcard had accounted for 62 per cent of Catuity’s total revenue. At the end of December (Catuity’s balance date), Visa USA had accounted for 97per cent of the company’s receivables.” The lesson seems to be … if you are a struggling technology company, you don’t want to catch the attention of the Australian press. They don’t hold back.
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