Data#3 first half revenue and net profit take a dip
- 20 February, 2013 10:30
Data#3 has reported a net profit decrease of 5 per cent to $6.8 million for the half year of FY13, ending December 31. Compared to the same time last year, the Queensland-based company's NPAT was $7.2 million.
Revenue also dipped 7 per cent to $406.2 million. In a statement to the ASX, Data#3 said this reflected a change in timing of some licensing contract renewals and the continuation of challenging and competitive market conditions.
Product revenue decreased 9.7 per cent to $338.6 million, however services revenue increased 12.7 per cent to $66.6 million.
The uncertain investment environment and government spending cuts have contributed to ongoing project delays, constraining hardware product revenues, project services and contracting revenues, Data#3 said.
Offsetting this was its largest infrastructure contract for the supply of Cisco networking equipment to Perth’s Fiona Stanley Hospital, which had a positive impact on product and maintenance service revenues.
It also stated it maintains a strong balance sheet with no material debt.
Revenue and earnings for the six months were consistent with the guidance provided at the company's AGM address in November, Data#3 stated.
"The first half result came in slightly ahead of our plan largely due to a solid performance from our Licensing Solutions business and the contribution from the Fiona Stanley Hospital contract," Data#3 managing director, John Grant, said.
Grant expects uncertain market conditions experienced in both private and public sectors will continue for the remainder of this financial year.
"Under these circumstances, we are not in a position to provide guidance for the full year and we will keep shareholders informed," he said.
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