Storage devices-company Maxtec is confident that business is improving as the decision cycle employed by customers is being reduced from around nine months to a "more manageable level".
This is according to Maxtec CEO George Talbot, who says: "Another good sign is that margins are higher and hopefully another interest rate cut this week will help the overall situation even more."
Interest rates have been cut twice by a total of 2.5% this year by the SA Reserve Bank and the overall strength of the rand is lending hope that another cut may be in the offing this week.
Like many other small ICT companies, Maxtec has been hit hard by the blow-out in the sector and the overall slowdown in spending by large corporate customers. Maxtec`s share price is currently trading at around 5c.
Talbot says: "We are seeing a reduction in the decision cycle of customers from an average of nine months to a level that we can live with."
Maxtec is due to release its next set of interim results in late October to mid-November. The company has an August year-end.
"While we are not expecting a major turnaround in profitability, we are hoping that the company will move into the black," Talbot says.
Today Maxtec announced the resignation of its company secretary Craston Wilson, who will leave in November.
"Craston was on a three-year contract with us and he seems to want to retire to his holiday home," Talbot says.
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