earnings update asx release

This update appears to be trying to put a good spin on a poor situation ahead of the vote to reshuffle the Board.

** Company attempts to explain the 45% drop in EBIT "largely due to reducing demand" - Yet Sales Revenue is down only 6%

** Company wants shareholders to take solace in the fact that even though the 12/10 performance is dismal, the company is only "returning to the levels of profitability of the 2008 / 09 financial year." They have selectively chosen a comparison period that was the worst year for some time. Rather than the period 12/2008 (NPAT $1.45mio) - why didn't they choose 12/07 (NPAT $3.53mio) and 12/06 (NPAT $2.43mio)??

**This one is a doozy!!!
"There has been an underinvestment in product development, training and information technology by previous management which has left the business vulnerable to the downturn in consumer spending and increased competitive activity. Your Board is actively seeking to address these issues."

Well excuse me, but the current Board consists of members who seemingly sat back and allowed the subject situation to arise/continue - and they now seek shareholder re-election??

** "The Company is in a solid financial position with net debt at 31 December 2010 of $1.1 million comprising gross debt of $9.8 million and cash of $8.7 million"

Against this net debt position of just $1.1mio they managed to incur and interest bill for the 6 months of $400.000?? - Who do they borrow their money from, some back alley "payday lender" that charges usury rates??