Data#3 has suffered a drop in net profit as well as a lower-than-expected pre-tax profit for its fiscal year 2012, blaming its disappointing results on difficult market conditions.
Data#3 previously forecast $19.7 million in pre-tax profit for its financial year 2012, ended June 30. It today report pre-tax profit of $19.4 million, and an 8.8 percent drop in net profit to $13.7 million.
Earnings per share were also down 8.8 percent to 8.9 cents, while revenue experienced a record 16.3 percent jump to $811.4 million, marking the first time the company’s revenue exceeded $800 million.
Data#3 today told investors despite the drop in profit, its 2012 results were consistent with a “long-term trend” which has seen its pre-tax profit increase each year since 2006, only failing to do so for FY12 due to an 'unseasonably' high FY11.
The company recorded net profit before tax of $21.8 million in the financial year 2011, a 38 percent jump on FY2010.
Managing director John Grant said in a statement to the ASX the latest results were impacted by a market trend to delay major IT projects.
“Data#3 has achieved solid revenue growth in a period of challenging industry dynamics,” he said.
“Profit for the 2012 financial year was slightly below the exceptionally strong 2011 result, yet still above the long-term growth trend. On balance, we see this as a very good outcome that positions Data#3 well for the 2013 financial year.”
Data#3’s hardware and software division grew significantly, with revenues up 17.5 percent to $689.1 million, driven by a 35 percent increase in software licensing, which recorded revenue of $483.4 million for the period. Services revenue also increased, up 9.7 percent to $120.4 million.
Data#3 shares were down 5 cents to $1.16 in late morning trade.
Copyright © CRN Australia. All rights reserved.
Issue: 322 | December 2013
Access CRN's extensive online resources including; email bulletins, community discussions and unique online news.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can log on to the CRN website or start posting comments on articles.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain '@crn.com.au' to your white-listed senders.