ComputerCorp slides into the red, reports 19 per cent revenue drop

ComputerCorp slides into the red, reports 19 per cent revenue drop

Integrator experiences decline in revenue and operating loss topping $1.1 million

ASX-listed integrator, ComputerCorp (ASX: CZP), has recorded a $1.1 million operating loss and 19 per cent dip in revenues for the half-year to December 31.

The integrator attributed the decrease to the global financial crisis and a slow down in Federal Government spending.

According to a statement posted to the ASX, the company recorded $74.5 million in revenue, a slight increase from the $74.3 million posted the previous year when the integrator picked up Coretech and Paragon.

Excluding revenues from these two acquisitions, ComputerCorp’s revenue dipped 19 per cent. Its $1.1 million operating loss is a reversal of fortunes on the same period last year when it achieved net profits of $600,000.

In the ASX statement, ComputerCorp indicated it had experienced a decline in customer demand in two market areas including the ACT, which had decreased by 56 per cent and WA by 15 per cent. This time last year, these two markets represented 75 per cent of ComputerCorp’s revenue.

However, the integrator experienced a 28 per cent increase in its services revenue, which it attributed to its stronger focus on professional and managed services.

Earlier this month, ComputerCorp CEO, Robin Rindel said the global economic crisis and the exchange rate had taken its toll on customer spending.

“There are a number of projects expected to come online between now and the end of the financial year, so who knows what we’ll see going forward,” Rindell said.

He was confident the integrator could bounce back and improve profitability over the next six months through diversifying the business across the country, improving the ratio of product and services sales and keeping an eye on costs.

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