Ok so scouring back through NetComms annual report I have found...

Ok so scouring back through NetComms annual report I have found their statement on "Market Risk"

Annual Report 2009 (PAGE 64)

“(c) Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. In the last two financial years the Group has not used any derivative financial instruments to hedge its exposure to foreign exchange and interest rate risk. There has been no change to the Group’s exposure to market risks or the manner in which it manages and measures the risk from the previous period.”

It goes on to say (if I am understanding the document correctly and please feel free to correct me if I'm not) that a 10% increase or decrease in the Australian dollar vs US could lead to a maximum of $50,580+/- based on the US$ liabilities/assets held of ~$2 million. Yet they are reporting around $12.4 - $13.8 million decrease in revenue as a result of the depreciation of the US dollar.

It seems like someone did a boo boo....

Have I not understood something?

Might still be an overreaction by the market though, this is a company that has barely made $20 million revenue for the last 6+ years and now it’s making $71 million (albeit with very little profit). That seems like a nice increase to me. They have a low debt position and the company now has a PE of 6.5.