Data #3 looks to a better year

ASX-listed Data #3 reported a 50.2 percent increase in net profit to $3.34 million following restructuring, for its year ending 30 June 2004.

ASX-listed Data #3 reported a 50.2 percent increase in net profit to $3.34 million following restructuring, for its year ending 30 June 2004.

Year-on-year revenues were down 8.6 percent to $176.2 million.

The company also reported a decline in services revenue to $29.3 million compared to almost $32 million a year earlier due to lower sales in IT services outside QLD and in its Application Solutions business.

Data #3 last year closed its SAP reseller operation and in July sold its Microsoft Navision business unit to Eclipse Computing.

Reduced contribution from supply contracts held by its Procurement Services business affected revenue and profitability, the company said.

In addition, "below expected performance" in NSW, Victoria and the ACT in core technology integration and product sales due to continuing competitive pressure and management changes also affected results, the company said.

Still, company MD John Grant, said while results were mixed across the businesses, the outcome met market expectations and the company "was better structured for the 2005 financial year.

"As a result of continuous performance review, we either closed or sold some parts of our applications business. In addition we have merged a number of our state-based businesses to give us focus along six national lines of business," Grant said.

Data #3 declared a final dividend to shareholders of 9.5 cents per share, bringing total dividends for the year to 15.5 cents per share. The company had net operating cash flows of $4.3 million.

During the 2003 financial year, Data #3 was affected by a failed joint venture with Powerlan (QLD} which led to a $1.95 million pre-tax write-down.