Commander reports $506 million in half-year revenues
- 21 February, 2007 17:30
Commander has met its financial guidance forecasts, reporting a 59 per cent increase in its first-half revenues to December 31 to $506 million. The results incorporate earnings from the Volante business, which it acquired in April last year.
The ASX-listed ICT provider recorded an EBITDA of $22.8 million, but a net loss after restructuring costs and depreciation of $5.59 million.
Services proved the top performing sector, with year-on-year revenue increasing from just over $36 million in the first half of the 2006 financial year to $99.6 million in the first half of 2007. The business segment now represents about 20 per cent of Commander's total business.
In a statement, managing director, Adrian Coote, said it had retained all services contracts since the Volante acquisition, as well as taken on several fresh clients. The most notable was a new three-year, multimillion dollar managed services deal with Mitsubishi Motors for desktop, server and network services.
ICT hardware sales were also significantly improved, more than doubling from $108.2 million in 2005 to $231.5 million in 2006. The figures were augmented by the inclusion of Volante in the group, the company stated. Network and voice equipment revenue was virtually unchanged at just over $175 million.
Coote also singled out Commander's franchise program as a strong contributor to its half-year growth. Since the launch of its first pilot store in Launceston, Tasmania, in January last year, it has signed 27 franchisees. Of these, 11 are operational.
He said the current financial year was one of transformation for Commander. The Volante acquisition had presented it with new opportunities to sell ICT products and services into the enterprise and government sector, while the franchises were broadening metropolitan reach.
The company has reiterated its FY07 revenue guidance of $1.1 billion-$1.2 billion, as well as a projected EBITDA of $95 million - $101 million.
Coote said its focus for the rest of the year was to exploit further cross-selling products and services and make the most of its enhanced managed services capabilities.
He also said further industry consolidation presented more opportunities for Commander.