JSE-listed FrontRange improved its headline earnings from 0.1c to 2c in the six months to December, while its attributable loss improved by 33.7%.
FrontRange is the 100% owner of US company FrontRange Solutions, a developer of integrated business relationship and service management solutions.
Revenue slipped to R249.11 million from the R391.08 million of the same period the previous financial year.
However, CEO Dana Buys says maintenance revenue was strong, increasing by 16% to $17.9 million, or R127.2 million. Professional services revenue rose by 11% to $4.2 million (R30 million) while licence sales fell by 34% to $12.9 million (R91.9 million).
Buys attributes the decline to difficult market conditions and a lack of compelling new product releases until late in the period.
An attributable loss of R9.92 million compares with a R14.97 million loss a year earlier.
Buys says headline earnings benefited from exchange gains of $1.8 million (R12.7 million) but were hit by exceptional restructuring charges of $3.4 million (R20.2 million).
He says the balance sheet is clean with no long-term debt and the outlook for the rest of the financial year is positive.
"Cost-cutting initiatives already executed have resulted in FrontRange having an expense base in the region of $17 million per quarter and FrontRange does not anticipate having to take any significant additional restructuring charges in the period ending June 2004.
"Economic projections in the US and other major world economies seem to be improving, and FrontRange is cautiously confident that it will be able to build on the incremental quarterly revenue achieved in the previous two quarters."
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