today, page-6

Ivan,

All good points and your calculations pretty much match mine. One small point on your calculations dividend returnis anticipated to be 50-70% of profit after working capital, which is pretty high (will get lower when they ditch the hardware).

KYC made comment regarding the Westpac contract a few announcements ago (follow the link; Stockness Monster a great site if you haven't seen it before):

http://www.stocknessmonster.com/news-item?S=KYC&E=ASX&N=550050

I personally think the move out of Hardware to Software is a great move for the company. No repairs, storage, freight overheads. These are all massive for this sort of company, let alone delivery timelines to meet contract obligations, which are bound to exist with a client like Westpac.

The more lucrative software contract is in existence until May 11. I have no doubt the search for replacement or extension is already going on.

Finally, KYC has a good track record on returning excess funds to shareholders if nothing presents in the market. If they do return what you suggest then my average price after dividends is around 10 Cents, that would be a 60% ROI in one year in dividend alone.

Given my shareholding, close to 1% of the company, I'm considering paying management a visit in the near future. I'll let you know if I arrange something.

4TK