I have a 4.8V 1400 mAh NiCd receiver battery in a 40 size plane. The battery has been working fine (is 3 years old), but I thought since we are coming into a new season I would cycle it with the Hobbico Accucyle elite. This charger discharges then charges the battery with standard settings as follows:

NiCd/NiMh, 4 cells, peak charge 0.55A, trickle 30mA, peak sensitivity 8mV/cell, discharge 0.3A, discharge cutoff 1.1V/cell

After a cycle of discharge and then charge it says the capacity is 498mA, and 5.708V. I am confused. Is this a bad battery?
I also have a Voltwatch2 on this plan (perhaps a controversial topic) and is is full green. (Yes, I am to lazy to use an ESV before each flight).

I tried cycling another battery (1600mAh Nicad, same settings except charge of 0.8A) and it said the capacity was 1478 mAh.

Any help is appreciated.

Thanks