Half Year Results, page-4

Actually, revenues are rising steadily. This is clearly a story of a company investing for future periods, unashamedly reinforced by the company itself.

It never ceases to amaze me the short-sightedness of those who sell out when they look at one number  i.e NPAT.  No doubt we have seen this exact behaviour since the 1H2015 results came out.

This company expenses their R & D immediately. They spent an additional $0.8m on R & D in 1H2015 over and above 1H2014. If they had spent the same amount, NPAT was up by 16% in 1H2015.

The question then becomes, is this R & D expenditure creating shareholder value? A quick look at eps reveals that it has quadrupled in the last 6 years.

I'm more than happy to back management's call on investing for further growth and not standing still. Cash flow is superb, there is no debt and the outlook is positive in 2H2015 and beyond.