IDION Technology Holdings today reported headline earnings of US$1.48 million for the year ended December 2004, and outlined an international growth strategy for its US subsidiary, Vision Solutions.
Vision is IDION`s sole operating subsidiary. It is a leading vendor of high availability software products that enable a company`s applications and information to be continuously accessible across computer platforms and databases. Vision`s products are used worldwide in industries such as banking, finance, government, education, healthcare, distribution, manufacturing, transportation and telecommunications.
These results translated into headline earnings per share of 1.3 US cents (2003: 1.4 US cents), against the backdrop of IBM`s product transitioning issues and a soft market for enterprise software spending.
Managing Director Nicolaas Vlok said he was pleased with the results, considering they were achieved in a difficult period, with part of the year burdened by DataMirror as a hostile shareholder. It was also a period during which Vision began to see the results of its long-term growth strategy.
"When we acquired Vision, we started putting in place the infrastructure, including systems and management that could provide us a platform for growth. We now have a broad mix of world-class high availability products to offer to customers in our worldwide markets, and have built the foundation for long-term revenue growth and profitability.
"Each year since Vision has been acquired, we have invested approximately 20% of revenues in research and development. The result of that has been ORION, which positions Vision as the leader in high availability solutions on the IBM eServer platform. ORION gives clients high availability across multiple operating systems and multiple databases.
Vlok also referred to the purchase of OS solutions in the UK, which IDION announced during February 2005. "This is a strategic acquisition which gives us an entry into the growing market for high availability products in small and medium businesses, complementing Vision`s existing customer base of large national and multinational corporations."
Vlok said IDION was looking for further expansion this year, including additional investments that would contribute to the potential for long-term earnings growth.
Finance director Willem Richard said the Group`s balance sheet was sound and its net cash position remained strong at $10.25 million (31 December 2003: $10.41 million), providing a basis for Vision`s expansion strategy.
Richard is leaving the company at the end of April, and will be replaced as IDION group finance director by Tim Keithahn, chief financial officer at Vision.
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