Tadpole takes dive
The shares of Cambridge-based Tadpole Technology took a 12 per cent hit after it revealed that uncertainty continued to surround the payment date for its downgraded contract with Softbank BB Corporation.In 2004, Softbank had negotiated changes to its contract with Tadpole subsidiary, StreamTheory, to reflect a delayed roll-out programme.
Rather than orders worth $4.5m (£2.5m) over the six months ended 31 March 2005, Softbank called for orders of $0.2m (£0.1m) per month from December 2004 to August 2005, $1.3m (£0.7m) in September 2005 and the balance of $1.4m (£0.8m) by December 2005.
An order of $1.2m (£0.69m) was received in September 2005, but to date no cash has been received in payment of the related invoice.
Contractual payment terms are 45 days and orders for the balance of $1.4m due by 31 December 2005 have not yet been received.
In a statement to shareholders, the company said that while the directors have no reason to believe Softbank will not honour its volume commitment under the contract, uncertainty remains as to the timing of receipt of overdue orders and cash.
StreamTheory management is in discussion with Softbank to resolve this uncertainty and further updates will be given as appropriate.