Y3K Group incurred a headline loss of 0.8c a share for the six months to 31 August, a 27% improvement from a year ago when it reported an interim headline loss of 1.1c a share.
<B>Salient figures</B>
Y3K Group results for the six months to 31 August 2002.
Year-earlier figures in parentheses:
Revenue: R5.31m (R10.19m)
Gross profit: R2.96m (R4.17m)
Operating profit before exceptional item and net finance charges: -R280 000 (-R517 000)
Net profit: -R402 000 (-R598 000)
HEPS: -0.8c (-1.1c)
Current assets: R2.3m (R7.97m)
Bank and cash: R155 000 (R41 000)
Current liabilities: R5.63m (R6.48m)
Cash flows from operating activities: -R448 000 (R342 000)
NAV per share: 0.9c (4.8c)
NTAV per share: -5.4c (4.4c)
After a restructuring process, the group`s operations now consist of the security division and the Micro-Angelo division, with the latter providing support, implementation and back up for Y3K`s own point-of-sale software product.
The group incurred a net loss of R402 000 (2001: R598 000 loss), which CEO Ryan Price says is largely the result of an amortisation charge of R678 000.
The charge is related to Y3K`s Windows-based point-of-sale software division. Price says the division is expected to at least break even in coming periods.
The security products division achieved a profit of R108 000.
"During the period under review new management started to implement a more aggressive approach to the business in order to return it to financial health," Price says.
"Although the results for the six months under review continue to show losses after amortisation charges, much has been achieved in terms of this objective.
"Y3K is now in a position to rebuild and develop the business, based on greater depth of expertise and improved focus. Y3K continues to increase its market share in this sector, with products aimed at medium and large enterprises with distributed networks and servers."
He says management remains committed to achieving a turnaround despite the overhang of problems associated with the restructuring and negative sentiment in the IT environment.
"In the absence of unforeseen circumstances, the group should achieve satisfactory profits for the year ending 28 February 2003, before amortisation of intangible assets is taken into account."
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