It has apparently been a very good year for Solution 6, according to its recently released annual report. The abandonment of certain business interests combined with recent acquisitions has seen the company post strong figures in both total revenue and in actual earnings.
Thanks to three separate acquisitions during the year, Solution 6 earned total revenue of $324 million, an increase of 14 per cent over the previous year's $284 million. The purchase of Perpetual Systems added significant punch to the company's IT products and services capability, while the Keystone Group is another new jewel in Solution 6's crown, adding some major contracts to the company's portfolio. Lastly, Solution 6 recently put the final touches on the acquisition of Novient, a leading player in the US professional software automation market.
Despite improvements in Solution 6's profit margins, the company is still feeling the effects of the global slowdown in IT spending. "The environment remains a challenging one for software and technology companies," said Neil Gamble, Solution 6's managing director. "Our share price has tracked the Nasdaq, a market closely related with our industry." The eBusiness Division had a particularly hard time improving revenue over the past year.
So far, however, the company is claiming its decision to ditch its IT Services Division is paying dividends, and that the company's new focus on professional services software (PSS) is proving a wise move. This is the first year that Solution 6 has operated at a profit, and that is largely thanks to the strengths of its acquisitions and strong PSS earnings.