Data#3 down for first half 2012

Blames hardware market for profit decline.

Data#3 has reported a fall in net profit of almost 10 percent for the first half of 2012, blaming a market shift away from hardware and towards software and managed services.

The company today reported net profit after tax had dropped 9.5 percent to $7.2 million, citing “increasingly uncertain” customers in the hardware and project services markets.

In a statement to the ASX this morning the company said the NPAT figure was low compared to the “exceptionally high” first half 2011 figure but “well ahead of a long term trend”.

Data#3 saw growth in its software licensing, managed services and recruitment and contracting divisions, while expenses increased over 13 percent. 

Data#3 declined to provide a financial forecast for the remainder of the 2012 financial year, with managing director John Grant predicting uncertain conditions to continue to affect operations for the full year. 

Investors didn't react well to the news, wth Data#3 shares down 6.4 percent to $1.17 in late afternoon trade.