ASX-listed Web hosting company Hostworks expects the six months to December 31 to incur a small loss, but is confident that a market turnaround will see it achieve its goal of profitability by the end of the financial year.
In an ASX announcement in July, the Adelaide-based Web-hosting specialist predicted the current financial year would bring the company into profitability, but a move to expand the company's sales capabilities has dampened business over the last few months.
In an address to shareholders, Hostworks chairman David Archer said that despite the events of Spetember 11 and the distraction of the upcoming Federal election, the company is "proceeding satisfactorily". He expects a loss of around $1.3 million for the first six months of the financial year to be followed by month-on-month profits for the second half.
Archer attempted to quell shareholder anxiety by announcing the company still had cash reserves of around $6.5 million.