Data#3 hits record half-year profits

Data#3 hits record half-year profits

Integrator confirms its strong performance and points to managed services as a key growth area

Data#3 has posted record half-year profits

Data#3 has posted record half-year profits

ASX-listed integrator, Data#3 (ASX:DTL), has side-stepped the economic doom and gloom, posting record half-year profits and increasing its dividend by 11 per cent.

Data#3’s revenue grew 46 per cent to $230 million and after-tax profits were up 9 per cent to $4 million in the six months to December 31, 2008.

It has also increased its dividend to $0.20, up 11 per cent. The integrator predicted the results earlier this year, attributing the performance to its decision to recruit former Commander staff to expand into SA and WA last year. CEO, John Grant, pointed to the company’s ability to achieve comparable year-on-year revenue growth as a key strength.

“The contract product procurement unit has really sustained volumes and revenues given the government contracts we have particularly the contract we have here in Queensland,” he said.

“But probably the most influential over time is our managed services growth. The area of the business where we have gained a number of contracts, long-term contracts where revenues have not really started to flow yet. They will start to flow in the second half and beyond so we are pretty pleased from a strategic point of view about the repositioning of revenue around the manages services business.

Data#3 experienced growth across its software licensing division, which was up 87 per cent to hit $116.5 million. Infrastructure solutions also jumped 25 per cent to $91.9 million. The integrator’s people solutions arm was up just 1 per cent because of a softening recruitment market. “Given there is no precedence for where we are and the unpredictability of the market, we have framed the guidance in as positive a light as we can,” Grant said.

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