Legend back in the black after poor first half

Legend back in the black after poor first half

Legend Corporation has reported a net profit of $2.2 million on revenue of $96 million for the six months to June 30, recording full-year profits of $1.9 million on total revenue of $193.5 million.

The result rectified a poor first half, which the memory manufacturer and distributor blamed on the acquisition of integrated circuit maker, IES, and electrical manufacturer, Cabac.

An ongoing decline in demand for memory products was also a factor according to Legend CEO, Bradley Dowe.

"In 20 years of business, this first half was the worst I've ever delivered," he said. "The result we're reporting now represents a strong turnaround from that."

Dowe said the business had spent the past six months reorganising. A bloated inventory that sat at $42.2 million in mid-2006, only to be increased a further $12.8 million through the acquisitions of Cabac and IES, had also been trimmed to a total of $37.3 million.

Legend is pinning hopes for an improved result in the current financial year on increased memory demand for users of Windows Vista and the expansion of export markets to locations such as North America.

It is aiming for pre-tax profits in the range of $12.1 million to $14.7 million. This would mean delivering growth of about 50 per cent.

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