The road to recovery has not come without a few speed bumps for Solution 6. The ASX-listed software vendor reported a net loss before tax of $12.2 million for the six months to December 2002.
Solution 6 reported lower revenues compared with the same period last year, mainly due to a raft of divestments including the company’s IT services arm, Alphawest. These divestments diluted earnings somewhat over the period, but they also strengthened the company’s balance sheet to about $40 million.
The vendor’s core professional software automation business rose slightly on the prior reporting period to $91.6 million. While the recent strategic acquisitions of Keystone and Novient resulted in an estimated $50 million of contracts in the pipeline, the company said most of these revenues would be realised in future quarters.
The company did not expect to realise the cost-cutting benefits of its 200-plus staff reductions until 2003.
“General market conditions have been soft and delays in signing contracts have depressed the results for the first half,” Solution 6 chief executive officer, Neil Gamble, said. “We anticipate a stronger performance in the second half, although we will be stretched to meet our earlier targets for the full year.”