Data#3 is expected to report a profit decrease of nine per cent after tax for the full financial year in 2018, totalling approximately $14 million.
Revealed via an advisory note to shareholders, the Brisbane-based business expects net profit before tax for the entire year to total $20.4 million, slightly down on previous year figures of $22.4 million.
Such figures are subject to Discovery Technology results - which is 77.4 per cent owned by Data#3 - and the group’s year-end audit.
“These pre-audit estimates for the full year represent solid performance in the core Data#3 business,” a company stated via the ASX read. “Following the challenging first half, the core Data#3 business delivered a record second half result, ending the year ahead of FY17.”
According to the technology provider, Business Aspect - acquired in September 2014 - reported a “strong second half”, recovering from a first half loss to end with an estimated full year result close to break even, but below FY17.
Meanwhile, the current estimate of the second half performance of Discovery Technology - a wi-fi analytics provider - is approximately $1.4 million below the previous corresponding period (PCP), producing a full-year net profit before tax of approximately $1.8 million, coming in under the FY17 profit of $1.4 million.
According to Data#3, this is due predominantly to a customer’s early termination of a five-year supply contract.
“This action is currently subject to legal proceedings for debt and economic loss recovery, instituted by Discovery Technology,” a company statement added.
With full-year results expected on 22 August, the advisory note comes two months after revelations that Data#3’s new whole-of-government Microsoft software procurement deal with the Federal Government will be worth $70 million over the next year for the Australian integrator.
As reported by ARN in March, Data#3 was named as the sole provider of Microsoft licensing solutions on the Australian Government’s new whole-of-government software procurement arrangement, which is set to initially run from March this year to March 2021.
The win saw Data#3 once again retain its coveted position as the sole whole-of-government Microsoft licensing provider under the new panel.
During FY17, Data#3’s revenue cracked $1.1 billion, with the company now employing more than 1100 staff across 12 locations in Australia and Fiji.