NPAT looks low because amortization is high - about $2.4m in the...

NPAT looks low because amortization is high - about $2.4m in the first half alone. Most of the amortization in this case is non cash i.e. amortization was $1.4m higher in the first half than capitalisation of spending on intangibles. If OTH simply wrote the intangible assets down to zero and stopped capitalising spending on intangibles then NPAT would suddenly jump to about $2.1m in 1H13.

With a market cap of $60m, it's trading on 15x PE ex amortization.