Ann: Appendix 4E & Annual Report to shareholders, page-4

The business case for SAAS is that new customers can be added at minimal incremenatl cost, so new renevue is almost pure profit...revenue first needs to cover costs though.

Revenue growth was 10%, which seems solid, but assuming that same ARR growth rate continues we're still about 2.5yrs away from being profitable, which is quite a long time in investmentland. So unless there's a reasonable expectation that either revenue growth will accelerate and/or that costs will be reduced, I think it's an adequate result but definitley not an exciting one. There's obviously potential for step-change sized growth if a new or existing client adds a large number of sites (as we've been hoping for a while might happen in WA with Water), but until that happens I assume it will be more slow & steady acquisition.

One thing that bugs me a bit is the use of "Gross Profit" to describe what is actually gross margin. We lost $13M, saying we made a "Gross Profit" was 48% sounds at best idiotic and at worst intentionally misleading.