Y3K Group reduces losses

JSE-listed Y3K Group improved its fortunes in the six months to end-August, despite the impact of the poorly performing networking division, which has subsequently been sold.

The information security division, which sells, supports and manages IT security products, is now the only operating company in the group.

"The networking division performed poorly during the period with both turnover and margins under pressure," says Y3K CEO Sonny Fisher. The division was sold back to the original vendors after the end of the interim period.

Fisher says the group`s R598 000 net loss for the period includes losses from the division as well as unnecessary costs arising from lease commitments entered into when Y3K Group had a broad spread of operating divisions.

"These excess costs are being reduced as quickly as possible and a return to profitability is expected by early 2002."

Fisher adds that the group will continue to focus on increasing its market share as a software security products and services provider to the medium and large corporate market.

"An emphasis on services should result in an improvement in margins in the second half of the year," he adds.