Data#3 services boost results

Data#3 services boost results

A buoyant market has helped ASX-listed services company, Data#3, record a 22 per cent increase in services revenues for the six months ending December 2004.

Product revenues were also up 4 per cent on the same period in the previous year, which the company credited to growth in its software licensing business. Product sales totalled $76.3 million for the period, with services representing $18.1 million.

Data#3 managing director, John Grant, said the jump in services revenue had been achieved despite the company selling two application businesses during the past year - one based around reselling Navision and the other a small CRM practice.

"There has been an industry upturn but we have also managed to grow our share," he said. "Our recruitment services revenues have gone up substantially in what is a very buoyant market."

The Queensland-based company would continue to focus on developing expertise around the core technologies of four key vendor partners - Microsoft, Cisco, IBM and HP - according to Grant. It would also continue to focus on building its reputation outside of its home state.

"We are starting to reap some rewards from the focus we have put on the NSW and Victoria markets," he said. "Specialist enterprise and licensing offerings are performing well in NSW, while we also have high demand for IP services in Victoria."

From an IBM perspective, Grant said Data#3 had improved its capabilities in the vendor's enterprise infrastructure and grown its Victoria presence. He expected this to pay dividends in the second half of the year.

Grant described his company's recent performance as a large account Microsoft reseller as spectacular.

He said this was a result of appointing licensing specialists for the east coast as well as building consulting capability for software asset management. Data#3 had also invested in Microsoft-related services, again with a particular focus on NSW and Victoria.

Having become a Cisco gold partner about 12 months ago, Data#3 was concentrating on advanced technologies including IP telephony. Grant claimed his company was the fastest growing of Cisco's gold partners, albeit from a small base.

He said business volumes with HP were less strong than he would have liked in the six months ending December, but predicted they would be a lot stronger in the next half year because of new business in the pipeline with existing customers.

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