to the happy holders out there, page-4

Hi gominer,

Just had a quick look at the financials, profit as expected, but look closer and both good and bad points emerge.

Sales only up 9%, but cost of sales flat which is excellent!

Operating cash flow less than profit which is generally a bad sign but for a growing company like SDI it is not too much of a concern since a lot of the sales are tied up in debtors, from memory i think debors was up nearly $3 million which explains part of the shortfall in cash flow.

Net debt still stagnant - due to working capital being tied-up and thus only a dividend of 4.5 cents which is prudent in these circumstances.

Will write in more detail about the financials next week after i've digested the numbers further.

Share price is vulnerable at the moment and will be choppy as the trades are on crap volume - market is very thin and a large buy or seller entering can move the market significantly.

Watch out when they report the chairman's address to the AGM in a few months, they traditionally disclose what their 1st quarter sales are doing respective to previous year quarter sales - will be good indication of how the new products are going but bear in mind that 1st half sales are much lower than 2nd half so it will be easier for SDI to report greater percentage increases in this quarter.

With all the new products released expect solid growth to continue for next year.