it's a mystery, page-14

I think the stock has taken a hit from the poorly handled conference call which I guess is understandable given both the CEO and CFO have never run a public company before and therefore had to lead these calls. Having said that, the quality of the CEO and the team he has assembled around him is remarkable to say the least!

The acquisition of Infinitive and Stargate helps put that into perspective when you think about the fact that RFL now controls 25% of the front-end mortgage applications through Stargate's systems and also 10% of the mortgage gateway market which is only a two player market. This provides the obvious opportunity to reroute the traffic from Stargate's front-end applications into Infinitive's gateway which would mean their share of mortgage gateways has to lift to at least 25% over FY15 without actually doing anything extra! This can be achieved without any pressure on industry pricing which is always beneficial. Any extra traffic they bring over is a bonus. The icing on top is if they can then coax the banks to start paying for their mortgage flows through their gateway like they do in the United States.

In terms of the specific points you raised above, my interpretation of them is as follows:
-the results for FY13 were restated as you said, however this was the result of errors under the previous CFO. This didn't affect guidance in any way since they had guided to achieving $30m in revenue and $8m in EBITDA. This guidance was met.

-operating EBITDA is a more fair metric to look at given RFL has decided to adopt a more conservative and fair treatment of R&D expenditure. Previously the bulk was capitalised and only partially expensed in the current period. However, the new management has adopted a fairer assessment of this expenditure and has decided to expense c75% of it in the actual incurred period. Although this hurts accounting earnings, it has absolutely no impact on operating cash flows! In fact, operating cash flows improved in FY14 as should have been expected.

-technically it was a record profit because the income tax benefit from the recognition of a DTA does actually create shareholder value due to a lower outflow of cash to the ATO - a positive for shareholders! Irrespective of this, the company has correctly called it out as a significant item. To be honest, RFL could have easily continued expensing less R&D like in the past and capitalised more of it and manufactured a record profit even before any benefit from the DTA recognition. However, as a shareholder, I'd prefer the company to expense more and capitalise less because it is a cleaner way of presenting the accounts.