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RSI International Systems making progress towards free cash flow positive despite billing dispute

Revenues from the affected client total approximately $35,000 per month, the firm said

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The firm specialises in the technology behind running a hotel

Toronto-listed RSI International Systems Inc (CVE:RSY)  said it was still making progress towards its goal of becoming operating free cash flow positive - as it revealed it  was negotiating a billing dispute with one customer.

The group supplies a property management system, or 'PMS' to hotels and the hospitality industry, which can manage the cycle of a hotel's business.

The firm said it expects that "while the dispute is outstanding, the timing of the company's progress toward operating free cash flow positive" as discussed on August at the time of the second quarter results, will be affected.

Revenues from the affected client total approximately $35,000 per month, it added.

"Given that we have continued to restructure and make ongoing expense reductions, we are still making progress towards our goal of becoming operating free cash flow positive," said RSI president and chief executive Tim Major.

"However, given the timing of some of the expense reductions, we expect that we will have a period of off-trend cash flow performance until some of the restructuring benefits take effect early next year."

He added: "As an example of the progress in expense reductions we are making, at the beginning of February, 2018, we will be maximizing the efficiency and motivation of our team by evolving our workplace to co-working and virtual office spaces.

 "An added benefit of this change will be to significantly reduce our office costs, thereby creating monthly working capital for reinvestment purposes by approximately $25,000 to $30,000.

"When combined with other expense reductions, these types of ongoing savings have made our business much more efficient and better able to deal with adverse events while still allowing us to pursue our strategic plan."

Shares were unchanged at 16 cents.

Quick facts: RSI International Systems Inc.

Price: - -

TSX-V:RSY
Market: TSX-V
Market Cap: -
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