Data #3 reports $2.26M profit

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Large Australian integrator Data #3 has reported revenue of $192 million and a net profit of $2.2 million for its year ending 30 June 2003.

Large Australian integrator Data #3 on Friday reported revenue of $192 million and a net profit of $2.2 million for its year ending June 30, 2003.


The result was slightly up on the company's $172 million in revenues last financial year.


Strong performance in the second half from the contracts previously operated by the failed joint venture with Powerlan (QLD) saw the full year Powerlan loss reduce from $2.1 million recorded at the half year to $1 million pre-tax by year-end, the company said in a statement.


Data #3 had entered a joint venture partnership with Powerlan QLD which went into receivership last August.


John Grant, managing director at Data #3, said he was happy with Data #3's net profit result given 'that we copped that Powerlan bit in the first half'.


Grant said the company's products and services revenue mix remains the 'same as it's always been'.


Services-related revenue totalled $31.9 million, up 20 percent on last year, Grant said. Data #3 still garners the majority of its revenue ($160.1 million last financial year) from product-related sales.


'Services is tight -- it's competitive and anyone who says they're getting good money out of a full range of services is kidding themselves,' Grant said.


He claimed that in the consulting and managed services areas, 'you need the scale' to make higher margin. 'There's no free lunch in this industry at the moment,' he said.


This year, Grant expected the company to see growth in the areas of security, storage and disaster recovery. 'I expect next year to be not a lot different from [this year] he said, adding that there are some indications that the market is improving but they can't be validated. 'Users have moved away from the techspeak more than ever,' he said.


Data #3 is delivering shareholders a final dividend of 7.5 cents per share brining total dividends this year to 10 cents per share. 'There are not a lot of organisations that are paying healthy dividends,' he said.


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