Asiaone 1-42

5. Cost of revenue (cont’d)
FINANCIAL STATEMENTS
Had the License Agreements discussed in note 17 to the financial statements been in place at
the beginning of the period covered by this report, the cost of revenue would have been as
follows:
130
Proforma Company
(A) (B) (A) + (B)
Six- Sixmonth
September July month
period 1, 1999 23, 1999 period
Financial year ended to to ended
ended August 31, February November February February
(All figures in 1997 1998 1999 28, 1999 30, 1999 29, 2000 29, 2000
thousands) S$ S$ S$ S$
(unaudited)
S$ S$ S$
Cost of revenue as above 2,614 2,053 2,752 1,352 480 1,876 2,356
Licence fee 229 404 485 167 66 212 278
6. Operating expenses
2,843 2,457 3,237 1,519 546 2,088 2,634
Proforma Company
(A) (B) (A) + (B)
Six- Sixmonth
September July month
period 1, 1999 23, 1999 period
Financial year ended to to ended
ended August 31, February November February February
(All figures in 1997 1998 1999 28, 1999 30, 1999 29, 2000 29, 2000
thousands) S$ S$ S$ S$
(unaudited)
S$ S$ S$
Advertising and promotion 100 131 498 416 6 671 677
Communication lines 61 180 169 83 106 79 185
Legal costs
Software/hardware
73 90 160 119 29 234 263
maintenance 283 342 370 70 165 140 305
Premises cost 245 222 220 125 17 117 134
Telephone & telexes 207 173 180 80 30 24 54
Management fee — — — — — 465 465
Printing & stationeries 55 43 21 12 5 10 15
Trademarks written off — — — — — 166 166
Provision for doubtful debts — — — — — 27 27
Others 356 237 284 141 64 237 301
1,380 1,418 1,902 1,046 422 2,170 2,592
The operating expenses for the period from July 23, 1999 to February 29, 2000 incorporate a
management fee charged by the holding company to the Company after its incorporation. Had
the same management fee structure been in place since the beginning of the period covered in
this report, the operating expenses for the financial years ended August 31, 1997, 1998 and
1999 and for the six-month period ended February 28, 1999 would have increased by S$634,000,
S$691,000, S$711,000 and S$356,000 respectively.