Listed software provider SilverBridge, which had a disappointing 16 months to June and reported a net loss, anticipates the corrective action it has taken will benefit the company in the future.
The firm yesterday evening presented its results for the 16 months to June and reported revenue of R121 million compared with R106 million in the 12 months to February 2010. It made an after-tax loss of R24.3 million, compared with a profit of R16.1 million in the previous period.
SilverBridge, which moved its year-end to align it with the business's sales cycle, was negatively impacted by impairment charges of R22.97 million, after it wrote down its Ones & Zeros and Acczone units.
The company says the period was disappointing, mostly because of delivery challenges on complex projects and a slowdown in its consulting arm. Acczone, which it bought in December 2009, did not deliver the expected results.
Streamlined
However, the company has changed its operating model and integrated its subsidiaries into a single unit called SilverBridge Software Solutions, says CEO Jaco Swanepoel. The company has also focused on trimming costs, he adds.
“We have turned the corner. Following the corrective action of the previous financial period, we now have a business with a sustainable cost base and a service offering geared to meet the needs of our clients in the financial services industry.”
SilverBridge, which provides software to the financial services sector, now has four operating entities: consulting, implementation, rental and support. Its consulting arm is likely to fall away as the group has moved staff into its implementation unit, says CFO Jaco Maritz.
The company says the outlook for the group is “positive”.
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