a positive move

There is absolutely no doubt that from a corporate perspective, changes had to be made at Senetas given recent performances.This has happened and can only be a good thing for the company.A forward looking statement concerning the prospects of the company in 2007 and beyond would also be most welcome and I am sure will be forthcoming from the CEO in due course. FG is tired and needed to be moved aside. RL never wanted to be a Director in the first place,his area of expertise was clearly in sales. It is my understanding that considerable internal process changes have been implemented at Senetas and these will no doubt impact in the coming months. Allan Stockdale will make an excellent non executive Chairman since he is a stickler for process and detail and has the background as a former treasurer of the State of Victoria to steer the goodship Senetas into calmer and exciting waters. JB's appointment as a Director is most welcome and essential since he is charged with the day to day running of the Senetas business model. From my undertanding the year ahead has the potential to be most exciting. Of course, you can never win because for those who have sold or do not own shares in SEN, they will be hoping that a disaster is just around the corner. So be it. The R&D spend on hybrid technology continues unabated and has clearly contributed to the current first half year profit figure. But the good news is that the sales from the new suite of technology products developed from the core technology (products that corporate customers like banks and Gov agencies have specifically requested!!) will be reflected in the second half figures. This has always been the sales history of Senetas anyway, slow first half year, solid sales momentum building second half. At the end of the day, having had a background in a past life in technolgy development, it is fair to say that traction never happens when you expect it. Senetas is no different. In the network security sector, SEN has some of the world's best technolgy. The task is to leverage that technolgy for maximum return. Enter JB. This will happen I predict in 2007.

It is my view that the capital raising is now in its final stage (as at late Friday afternoon) and things will run their course accordingly. Senetas in the right hands is one of the most exciting business opportunities going around. Period. Yes, we have had to contend with self interest and inept decision making processes but I suspect that this is all about to soon change. The fact that the company has removed the self interest component is very positive. The company needs to be run by an independent board. RL is the largest shareholder and continues to support the company and has always recognised the potential. He has not ever sold a share and may I be so bold as to say that he will not change that policy in the short term. Similarly, for FG. Yes FG has been retained by the Board as a Director but in such succession processes, issues of knowledge management become critically important. Both RL and FG have been involved in the capital raising transaction so for those who feel something sinister is brewing because RL has resigned his Directorship, then perhaps some of us are guilty of connecting dots that are not really there! Easy to do though. FG remains and will continue to so because he retains much knowledge about SEN process that will require over time dissemination to the Board, the CEO and future employees and contractors both at a domestic and international level. This is simply smart. The release of the announcement after close of market was also smart since if the company had of gone into a trading halt intraday, expectation would have built and this would have in turn fed disappointment.

As of today, the company is now under the direction of an independent board. Simply stated, for holders, be happy about that. For those electing to favour the negative and be SEN antagonists, I say and have always said, fair enough!. Continue to enjoy that aspect of HC because it makes the whole thing fun and interesting.

Finally, from the Sicillian, well done Senetas today on making what I regard as the first serious and postive move for some time. Let us now hear from the CEO soon about the prospects in 2007 and let the rest play out in its own time. Remember, the grandest plans can often fail but what is left is what is left. In the case of SEN, there is a real business model that has experienced some buffeting of late but only primarily because other unrelated events have not fallen as expected. The future is looking a whole look better this evening for SEN shareholders.

Enjoy the weekend

Sicilly