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NetComm FY profit jumps 70 per cent

  • 19 August, 2004 16:21

<p>SYDNEY, August 19, 2004 - NetComm today reported a 70 percent rise in net profit to $1.9 million for FY03/04, delivering at the high end of expectations.</p>
<p>"This result affirms NetComm's standing as one of the leading suppliers of broadband and broadband-related equipment to Australian ISPs, businesses and the home," NetComm managing director, David Stewart said.</p>
<p>The company announced in June an unfranked dividend of 0.8 cents per share, paid on 17 August 2004.</p>
<p>NetComm's increased share of the Australian broadband equipment market, combined with higher demand for fast Internet services amongst business and home users, was a major factor in achieving this result.</p>
<p>Revenues for the year increased 36 percent to $23.9 million while earnings per share (EPS) jumped 60 percent from 1.6 cents to 2.7 cents.</p>
<p>Over the last 18 months, NetComm has positioned itself as a key supplier of ADSL equipment to the majority of the top-20 Australian Internet Service Providers (ISPs).</p>
<p>As the largest Australian owned company supplying broadband products, NetComm attributes its success to its ability to engineer solutions to customer requirements and its high quality training and support services.</p>
<p>NetComm has also experienced encouraging sales of wireless networking equipment, including its HotSpot solutions, which has enabled the company to gain an early market advantage. Other segments such as sales of traditional dial-up modems continue to make a strong contribution.</p>
<p>NetComm announced in May that it expected to generate in excess of $2 million in additional annual revenues from the wireless HotSpot market, with current sales giving it around 40 percent of the market when compared against current data from IDC.</p>
<p>"From its slow start only a few years ago, the local broadband market is now entering an exciting new phase fuelled by a genuine need for high-speed connections and the applications they support," Mr Stewart said.</p>
<p>About NetComm</p>
<p>NetComm is Australia's leading provider of broadband solutions with a commanding position across the key markets of DSL, wireless, routing, high-speed networking and digital surveillance systems. The company is listed on the Australian Stock Exchange (ASX: NTC). For specific enquiries or to arrange an interview with David Stewart or one of our engineers, contact David Binning: (02) 9424 2515, 0410 644 972, davidb@netcomm.com.au. Alternatively, visit www.netcomm.com.au.</p>

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