Ann: Half Yearly Report and Accounts , page-2

Improvement here.

Just look at that scorching hot margin of 57%, pretty impressive. No real revenue or subscriber growth though and no mention of what ADSL is contributing to revenue, seems all revenue is VOIP only, mind you ADSL only launched late 08 I guess.

Still running at a loss though of $3.1M YTD to Dec 08.

I don't get the Investor Update to shareholders about having no debt?

"Engin fundementals are now stronger than ever with the business rapidly approaching EBITDA and cashflow breakeven, $4.2 million of cash in the bank, no debt (with the exception of finance leases) and a strong balance sheet, all presenting opportunities for growth."

On page 10 it shows Current Liabilities of $4,462,405 mainly in trade & other payables.

Perhaps just terminology but I read this as OS debt?

As for the break even prediction, surely even with $5.6M of profit likely in the next 6 months, operating expenses will exceed this based on the last 6 months.

Overall a positive result and hope they can continue this.