The reason the stock is being smashed has very little to do with Huawei, I believe.
Instead, I think it is because they have been quite naughty and for the first time, started to capitalise R&D spend (by around $14m in the half... which is a meaningful number in the context of ~$60m in direct employee costs).
If one expenses that $14m figure directly through the P&L, as has been the accounting treatment of such expenditure in the past, then the result shows zero growth on the previous corresponding period.
And when you are trading at >35x P/E, you are being price for a somewhat significant quantum of growth, and when that growth fails to materialise, the de-rating potential is very meaningful.
The reason the stock is being smashed has very little to do with...
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