just doing the sums, page-5

trythree - All businesses have a 'break even'. This is the level of revenue needed to cover

(i) fixed costs, and
(ii) variable costs.

Once revenue exceeds the 'break even', we are into profit.

The fixed costs, being fixed, will have no effect on the profit as revenues increase above break even.

The variable costs, being variable, will have a braking effect on profit as revenues increase. But due to economies of scale, the more revenue generated above break even, the less braking on profit there will be.

The profit for companies therefore becomes a product not of total revenue, but of revenue ABOVE the break even. If they can increase revenue as a percentage of break even, and have low variable costs relative to revenue (which is typical of technology companies with market-leading products), profits will skyrocket.

Netcomm has both those characteristics.