Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-8

It’s what I expected really - the problems with the SOC and money going into the Incident response initiative is hitting profit.

for those saying they are not making money - they are. $3.9 million in EBITDA this quarter. However there isn’t the growth in profit you would expect to see from the growth in revenue, which I assume is from the money being spent trying to get the SOC functioning properly and employing extra resources for incident response.

The biggest disappointment is Daltrey looks like going down, which means a 3.2 million dollar impairment in August. Never nice to see money down the drain and unfortunately one of the downsides of software development vs services.

I think as usual it’s all going to come down to Q4. They really need to deliver decent EBITDA and cash generation. No more excuses about the SOC

Margin improvement to 8.2% is good, but you really want to see it well over 10%.

so not a great year for them, but if they have genuinely spent money this year to improve the business then we will see the results next FY.

not a share for anyone wanting quick results and share price growth