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.