NEC takes hit from CSG buy

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NEC takes hit from CSG buy

NEC has revealed the impact of last year’s acquisition of CSG’s IT solutions division, one of the most dramatic moves in the channel last year as the Japanese giant embarks on a mission to create one of the biggest systems integrators in Australia. 

The company reported a loss of $33.7 million for the 12 months to March 31 2013, compared with a net loss of just over $8 million for the previous corresponding period. A significant proportion of the losses were attributed to factors such as the disposal of discontinued businesses (namely Nextstep which was sold to AAPT).

An amount of $12 million was attributed to this with a further $9 million noted as due to general “restructure and redundancy” costs. Another $4 million was noted as deferred tax payments along with $3 million interest for loan repayments. 

NEC confirmed that without the acquisition it would have posted a better result for the year, amounting to a loss of around $5 million before significant items.“Notwithstanding these major significant items, the result for the year would have been an improvement on prior year result.”

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