Well if you understand business you would look at it in more detail. Revenues are almost double cost of sales, a nice markup. Other items are fixed cost so such as Admin, development, sales and marketing. When developing technology like this there is a high up-front cost in development. So as revenues increase (100% markup on cost) and development costs drop, you will find that losses turn very quickly into profits.
PS where did you get that losses are increasing? Losses are almist the samee on the corresponding 6 months in the previous year (taking away goodwill impairment of the previous year).
If you have a detailed look the extra expense has been in administration and sales and marketing. This is a good thing as it shows the company is growing. The cost benefits will come as revenues increase. This company is not far away from turning profitable as there have been 8 potential revnue driving announcements since the figures show in this report as at 31/12/07
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