Beleaguered point-of-sale software developer Pacsoft has turned a profit after almost two years of steady losses.
The company, which incorporates software development house Peg, burnt its way through $6 million in 12 months on the back of a mid-2000 public float, which raised $12 million.
Pacsoft has shed 39 staff over the last 12 months along with three of its seven board members. Apart from a few layoffs in the US, almost all the casualties were from the Sydney branch, which drained a large portion of the company's resources.
The impact of the restructure has been dramatic, turning a $4 million loss in September 2001 into a $553,000 profit this year.
"We're back on a steady footing and we'll see uptake," said Pacsoft managing director Andrew Darbyshire, in Sydney last week to break the happy news to shareholders.
Another area of vast improvement is the US, where the company's annual sales have jumped 150 per cent, from $803,000 last year to $2 million this year. This reaped a profit of $225,000 compared to last year's loss of $467,000.
The company is now priming its market strategy around two new POS products: Retail Works, which is developed out of Melbourne; and Enterprise, which is a Sydney project.
Darbyshire, the original founder of Pacsoft prior to its merger with Peg in June 2000, is said to be largely responsible for the turnaround. He moved from a back-seat role into the managing director's chair in June last year, replacing Bruce McKensie.
Darbyshire sold his business to Peg in June 2000 for $7.5 million, $2.5 million in cash and the remainder in shares. Today his shareholding of 22 per cent is worth about $1.5 million.