What is going on?, page-5

Nice result on face value, with EPS heading back up to 5.8 cents. However we are still shy of the high water mark of EPS of 6 cents in FY2014.

Certainly earnings fluctuate from period to period, management is guiding that a higher proportion of recurrent revenue in the future will result in earnings being more predictable. The cashflow from operations was weak in FY16, but this seems to have reversed in the early months of FY2017 with cash up by $10m in two months. The commentary about FY2017 is very bullish on the back of recent contract wins, we could see a strong 1H2017, particularly cycling such a weak 1H2016 result of NPAT of just $1.5m.

I've been a holder for a couple of years and I tend to tread carefully with a minor investment in this company. While I believe OCL are well managed financially & operationally, have a sound product offering and solid customer base, I'm still to be convinced that earnings will march higher in future periods.

Hope that helps a little.