Acquisitions yield fruit for Commander

Acquisitions yield fruit for Commander

ASX listed service provider and reseller, Commander, has reported a net profit of $6.34 million for the six months to December 31, 2002, after strong revenue growth.

Commander reported total revenues of $131.1 million for the half-year, a 39 per cent increase on the result for the same period last year.

Much of the revenue rise can be attributed to the listed company’s acquisition of large HP/Compaq reseller, Centari Systems, in July 2002.

Product sales increased 91 per cent from $41.2 million in the corresponding half-year to $78.6 million.

Commander managing director, Ian Tsicalas, said these figures were “distorted” by the acquisition of Centari.

“We think that these are solid results in a tough environment,” he said.

However, Tsicalas said that the integration of Centari Systems into the Commander business would take a couple of months longer than expected.

Centari had been bought for a sum of $16 million cash. There was a $4 million bonus pending if the acquired division met certain performance targets.

Tsicalas said that the Centari business was performing well, but not so well that he would expect it to meet these targets.

“They are on track to get at least part of that bonus,” he said. “The business is beginning to gather momentum.”

Services revenue for Commander showed some slight growth - up 16 per cent to $39.4 million.

While the company’s operational cash flows were up significantly to $7.7 million, the company’s appetite for investments had seen it report a net increase in cash held of $5.4 million.

However, Tsicalas said there were several funding options and lines of credit available to the company while it paid off its acquisitions off.

“I am getting comfortable that all of our acquisitions are travelling well,” he said.

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