Spescom's US Arm Reports
Business Day (Johannesburg)
February 17, 2003
Posted to the web February 17, 2003
Lesley Stones, Information Technology Editor
Johannesburg
THE US operation of technology group Spescom has reported another set of figures in the red, but this time it suffered a net loss of only $62000 for the first quarter of this financial year.
Figures have shown a gradual rallying-round for Spescom Software, which specialises in document management systems. A year ago its first-quarter results were far gloomier, with a net loss of 1,9m. Now its first-quarter results show revenue up 33% from $1,7m to $2,3m, with license revenues jumping 190% from $318000 to $921000.
The revenue generated by its services offerings remained flat at $1,4m.
Spescom Software CEO Carl Mostert said the positive trend marked the third consecutive quarter of improved operating results since Spescom restructured the subsidiary last year.
Earnings before interest, taxes, depreciation and amortisation for the quarter had improved to $186000, turning around a net loss of $1,6m a year ago, but depreciation and amortisation wiped off $123000.
Mostert said the company had generated $340000 in cash from its operating activities, mainly due to successfully growing its sales of new licenses and by boosting its gross profit margin from 28% to 63%.
The Johannesburg-listed parent company has not made any comment about how the latest performance of its US arm will affect the group as a whole in the current financial year.
However, Spescom chairman Tony Farah has already predicted better results for this year than for the 12 months ending September last year, saying the company had put its woes behind it. In that last financial year Spescom lost R85m, or 111,5c a share.
Much of the damage was directly caused by the US venture, as Spescom had bought 51% of the company when it was in dire straits and needed a major overhaul.
Farah is expecting Spescom Software to produce $10m in revenue with an acceptable profit level in the current year.
At the weekend Mostert said the subsidiary was on track to meet that goal, by shooting for $9m to $10m in revenue and pre-tax earnings of $800000 to $1m. |
