Idion`s headline earnings plunge

By Iain Scott for Idion Technology Holdings
Johannesburg, 14 Mar 2006

Idion Technology Holdings is to report at least a 46% decline in full-year headline earnings next week.

The group announced yesterday that headline earnings per share (HEPS) for the year to December would come to between 0.5 US cents and 0.7 US cents.

This compares with HEPS of 1.3 US cents for the previous financial year.

However, earnings per share (EPS) of between 0.5 US cents and 0.7 US cents compare with a previous loss of 0.8 US cents.

The full-year results are to be issued on 22 March.

Idion says in a trading update that the HEPS decline is because of several investment initiatives, focused on increased sales and marketing programmes and accelerated new product development activities, as well as integration costs related to the OS Solutions acquisition.

JSE-listed Idion`s sole operating subsidiary is US-headquartered Vision Solutions, which specialises in high availability software for the IBM eServer market.

At the interim stage, the investment spending led to a headline loss of 1 US cent per share, compared with HEPS of 0.2 US cents for the first half of the previous fiscal year.

"The board is satisfied with the status of the investment plan and early successes during the latter part of 2005. This positions the group well for 2006," Idion says in its trading statement.

The increase in EPS is mainly because the adoption of international financial reporting standards result in Idion no longer amortising goodwill.

The Idion share was untraded at 115c yesterday.