Big turnaround in finances puts AuDA Domain Name regulator in the red - 
http://www.ecommercereport.com.au/story53.php

A turnaround of more than half a million dollars in its financial 
situation over the last year has seen Internet domain name regulator ? 
Au Domain Administration Ltd - reporting a small loss for the financial 
year 2007/8.

It isn?t clear why auDA has slipped into the red, as the latest accounts 
published on its web-site show revenues from domain name, registry 
licence and registrar fees running at very similar levels to last year.
Total revenues for the year were just on $3million. That included a 
healthy contribution from interest on the $4.4million that auDA has 
retained in profits over the years.

However expenditures were up substantially on 2007, jumping nearly 25% 
in the year and leading to both an operating and an overall loss. Areas 
where auDA notably increased its spending during the year included 
directors fees, and expenses.
These increased more than $110,000 during the year to total $230,000.

Salaries and wages for auDA?s five staff also grew strongly to total 
some $660,000 for the year, although it isn?t clear how this amount 
relates to the $460,000 reported spent on directors and key management 
personnel. auDA?s financial situation isn?t normally a matter of media 
interest.

But in the wake of the revelation earlier this year that auDA had, after 
a two year battle, settled a federal court action brought against it by 
a local Internet entrepreneur, speculation has been growing as to just 
how much auDA spent on the case.
auDA appeared to draw the case out as long as it could, perhaps hoping 
to exhaust the financial resources of the Melbourne man who it had 
stripped of various .au domain names.

At one stage in the proceedings, it even forced him to put up a $100,000 
bond, after convincing the Court that there was some doubt over whether 
he could meet auDA?s costs should he lose. In the end, of course, he 
didn?t lose, but nor can it be said he won, as auDA settled the case and 
made a confidentiality agreement part of the settlement. But, as we 
reported at the time, after the settlement the domain names were 
restored to the registrant.

Most, if not all of auDA?s legal costs for the action are believed to 
have gone in the direction of local law firm, Maddocks, but just how 
much remains a mystery. AuDA?s accounts for 2007/2008 show legal costs 
of $278,000, up from $207,000 for the previous year. But it isn?t clear 
whether this includes the full amount of the Federal Court action, which 
wasn?t settled until late in August.