Data#3 predicts record half-year profit
- 15 November, 2006 16:54
Data#3 is backing itself to set new profit standards for the six months to December 31.
At its annual general meeting, the ASX-listed integrator predicted half-year profits before tax would be 10 per cent higher than the same period a year earlier. Data#3 recorded pre-tax profits of $3.8 million on revenues of $112.8 million in the six months to December 2005.
The company attributed the improved forecast to stronger than expected first quarter sales.
"We had a one-off transaction last year which influenced the results, so to get more than that this time around is a great outcome," managing director, John Grant, said. "Given the first half of the year is generally our investment period, it also represents a good result."
Grant was optimistic about the company's financial growth despite predicting a slight contraction in the market.
"The overall economic climate will deteriorate a bit, but the attitude towards ICT remains strong," he said. "We're now focusing on developing our new strategy and getting the right mix of people to implement it."
As reported earlier in ARN, Data#3 is embarking on a two-year plan to transition from an expertise-oriented technology business towards a solutions approach. This will see it offer solutions in business-related areas including workforce productivity, wireless and mobility, unified communications and software asset management. Grant said customer and shareholder feedback on the transition had been positive.
Data#3 chalked up annual revenue of $239 million and pre-tax profits of $8.2 million in the last financial year. These represented a year-on-year increase of 22 per cent and 37 per cent respectively.