Spescom Limited, the JSE-listed multi-national technology innovator, today released its financial results for the interim period ending 31 March 2003.
Revenues for continued operations increased by 20% from R154 million to R186 million, over the corresponding period last year. Headline earnings of R22.4 million were generated in contrast to the R68.5 million loss reported for the 2002 fiscal half.
This translates into headline earnings per share of 38c compared to the loss per share of 119c incurred in the first six months of 2002.
According to Spescom's executive chairman, Tony Farah, the significant improvement in profitability may be ascribed to various factors including enhanced margins on proprietary product revenues.
"The value of Spescom's globalisation strategy, with its focus on investment in growth through the development of proprietary technology, is now being realised. Improved cash flows generated from operations coupled with enhanced efficiencies resulting from the closure of loss-making operations have contributed to the increase in profitability. Cost reduction initiatives, implemented during the previous financial year are also a factor," says Farah.
Farah adds that the strengthening of the rand is a double-edged sword in that offshore revenues, reported in rands, are lower, however, the debt is materially reduced.
"Exchange rate translation gains accounted for approximately 50% of headline earnings generated during this period.
"Group debt reduction remains a high priority and initiatives in this regard are ongoing," says Farah.
Farah notes that the positive trend reflected in the first half is expected to continue for the full year ending 30 September 2003, with approximately 50% of group revenue emanating from outside of SA.
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Spescom is a multi-national technology innovator with direct operations in the US, UK and SA.
Spescom Limited is publicly listed on the JSE Securities Exchange, South Africa. Spescom Software Inc is publicly listed on the NASDAQ OTCBB: ALTS.OB.
Spescom addresses the information and communications technology market providing both products and solutions to connect to the network economy, as well as enterprise software to manage information and knowledge.
Specifically, Spescom provides solutions in the areas of access network; enterprise information management; multimedia transaction recording; broadcast; customer contact centres; and test and measurement.
Spescom markets its products worldwide through appointed partners and distributors under the eB brand for its enterprise software, and the DataVoice brand for its multimedia transaction recording solutions.
Spescom's global customer base consists of multi-national organisations including leading enterprises in the utilities, telecommunications, transportation, financial, banking and insurance sectors.
Worldwide, customers include Siemens, British Telecoms, Network Rail (formerly Railtrack), Lloyds of London, Barclays Bank, Abbey National Bank, WH Smith, Caterpillar, Bechtel, AmerenUE, Entergy, Bombardier, Ocean Energy, Sempra Energy, Telkom, SABC, Old Mutual, Eskom, Transnet, First National Bank.
For more information on Spescom, please visit www.spescomsoftware.com and www.spescom.com.