Volante has posted a net profit of $2 million for the six months ending December 31, a fall of $3.5 million on the same period 12 months previously.
With the crashing reduction in profit, the IT services company has elected to lay most blame on restructuring costs of $1.9 million and tendering costs of $1 million during the period for upsetting the result.
In addition, Volante group managing director, Ian Penman, used an ASX statement to also accept that product sales had not returned anticipated revenue and the company cost structure was "higher than acceptable".
The company is flagging better times ahead, however, by repeating the news that it has won new contracts in its professional services and managed services divisions which it claims will enhance its 2006 and 2007 figures. It has yet to reveal where these contracts are located.
Volante is currently the target of a takeover bid from communications integrator, Commander, which is seeking to capture 90 per cent of the business before March 31.
At the time of going to press, the most recent ASX statement issued by Commander noted that it had 4,241,050 shares or 3.3 per cent of the business.