Senetas posts $5.3 million record loss

Senetas posts $5.3 million record loss

Management remains optimistic that deferred sales will be won and markets will rebound

Melbourne-based encryption hardware supplier and developer, Senetas, has recorded a net loss before tax of $5.3 million for the financial year ending June 30.

This also includes a $2 million intangibles write off.

In mid-June, the company announced it anticipated a loss between $3 million to $4 million.

Company directors stated it had been a difficult year for the company with its IT consulting division grasping the full effect of the loss of a large long-term Telstra contract and delays in other consulting work.

This saw revenue tumble down 36 per cent in the division, but it still managed to contain costs to remain profitable.

Product division revenue fell 20 per cent due to delays in domestic and international sales, as well as global economic woes.

The strength of the Australian dollar also resulted in currency losses of $289,000.

Despite this dire result, the company said it experienced a marked increase in enquiries from new and potentially substantial distribution partners and customers.

Due to this, Senetas will continue investing in sales resources and R&D to maintain its product advantage in both its network encryption technology and application platforms.

Management remain optimistic that deferred sales will be won and its strongest markets, which include USA, Europe and A/NZ, will rebound.

During the past year, the company strategically expanded its reseller network into US and through acquiring a UK company now called Senetas Europe.

In A/NZ, Senetas reconfigured its sales effort opting for a channel model, moving away from direct sales.

“This has already increased opportunities and addressable market for Senetas encryption technology and is expected to translate to increased sales during 2012 and 2013,” the company said in a statement.

Senetas is counting on new business and repeat engagements, including a three-year appointment to the Victorian Government’s eServices panel, to increase its revenues in 2012.

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