Vision Solutions, JSE-listed Idion Technology Holdings` US subsidiary, has reported financial figures which Idion says defy the sceptics.
Idion`s results for the 10 months to 31 December 2000 include nine months of Vision`s operations.
Vision was turned around during the period, reporting net operating profit of $4.8 million before amortisation and tax, compared with a loss of $690 000 in the previous nine-month period.
Turnover increased 38% to $23.3 million.
Idion CE Nicolaas Vlok says he is pleased that sceptics who doubted the US subsidiary could sustain its growth after the interim results have been proved wrong, with Vision Solutions exceeding even internal targets.
Idion increased group revenue to R196.37 million for the 10 months to end-December, compared with a pro rata R42.86 million for the year-earlier period. About 89% of revenue is derived offshore.
Operating profit before amortisation was R33.18 million (1999: R16.93 million). Goodwill is being amortised and charged against income over periods ranging from one to seven years.
Headline earnings per share amounted to 21.01c (21.39c). Adjusted headline earnings per share, including the elimination of deferred tax charged on the realisation of acquired assessed losses according to AC102 (income taxes), were 33.02c (21.39c).
A net cash outflow of R10.72 million from operating activities includes debtors, says financial director Willem Richard.
"Vision had very high sales in the fourth quarter and that falls into debtors, because we don`t do cash sales. Post year-end our collection levels are high, which indicates that we did good deals in December," he adds.
Idion.BSG, the South African services division, did not perform in line with forecasts, and this also drained some cash.
Vlok says the company has identified the problem at Idion.BSG and has taken steps to correct it. He also expects to announce a new MD for the South African operations within days.
Vlok adds that the company stated two-and-a-half years ago that it would like to become a pure software development company within three years. He points out that the group`s own product already accounts for 85% of total revenue.
"We are confident, but also cautious," he says. The global economic slowdown remains a concern, but Vlok says a strong global management team has been put into place and the group is positioned "to weather the difficult times to come".
The group is set to launch a new version of its enterprise data sharing product - Symbiator v.3.0 - tomorrow. The tool bridges multiple relational databases with heterogeneous environments for access to data.
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