Ann: June 2016 Quarterly Report and Appendix 4C-YOW.AX, page-26

Pretty disappointing quarterly. I think the whole Whetstone wrapping machine saga really threw a spanner in things.

If I were to hazard a guess I would say the plan was for Angry Birds to be the main sales driver last quarter. They would get the wrapping machine in Feb, get it commissioned and start pumping out Angry Birds. I have little doubt they could have easily off-loaded another million or so Angry Birds if they had the capacity to make them. It still wouldn't have been a great quarter but certainly a big improvement on this disappointing result.

My concern is this quarter is going to be pretty average as well. Still have production capacity issues and 1st series Yowies might be starting to lose appeal.

The good news is the quarter after should be where things really kick off, I would expect to see (1) at least one and hopefully two wrapping machines commissioned in September/October (2) 2nd series of Yowies released (3) Halloween/Christmas sales spike (hopefully with seasonal Yowies for both) (4) commencing production of licensed products.

So, I'm inclined to look on the bright side and see this as a good opportunity to buy in the lull before things kick off.