Ann: Appendix 4D and Half Year Report, page-21

Hi gosouth
Here's an excerpt from what someone sent me that is at ADA:

Our strategy is primarily to grow our recurring revenue (services) and it is that revenue that underpins the business. If you look at the numbers for services revenue you will see that it has been growing every half for at least 4 years. Compared to the same half last year services revenue grew nearly 10%. The problem from a market communications perspective is this, every year we add to this services revenue by selling new systems and new product (this part is what the business use to be and why we were not profitable consistently). Most investors seem to focus on performance based on total revenues. This systems part of the business is highly susceptible to market conditions and has in the past been called lumpy. There is little that can be done on new system sales to change the market.

Also:
An unplanned large bump in system sales from last minute government end of year money spending is great news but it is an anomaly that makes the following year 4 very difficult if what we are focused on is telling the market that total revenues are higher. FY16 was a very good year from a systems perspective and it is that anomaly that makes FY17 H1 look poor. My advice to you is to look at the underlying systems performance for a more accurate depiction of how the business is doing. H1 was a great half in this regard but system sales are always subject to timing and budget issues and that implies we have poor performance. Again its perspective and that perspective is different based upon investor preferences.