JSE listed, Spescom today announced a headline loss of R11.8 million for the six months ending 31 March 2006, as compared to the R10.9 million loss for the corresponding period last year.
This translates into a headline loss of 16.4c per share from continuing operations which compares to a headline loss of 15.1c per share for the comparative prior period.
According to Spescom's CFO, Jene Palmer, the decline in revenues can be attributed to the deconsolidation of the US operation and the discontinuation of the test and measurement division.
"Traditionally Spescom's first half has always been slower than the remaining fiscal half but this year this pattern has been more pronounced," says Palmer.
She adds that forecasting revenues is difficult.
"Best estimates indicate an improved full year performance due to pipeline opportunities and orders on hand. However, the telecommunications arena is an example of the unpredictable nature of our business. Despite deregulation, this sector continues to be volatile. A conservative view of the market would be that revenues are only expected to begin flowing in 2007.
"A major issue that the group is faced with is that in many instances we are ahead of our time in terms of strategising for market changes that have not taken place in the anticipated time frame."
Palmer says all operations are experiencing a better second half.
Commenting on prospects she notes that Spescom's media division is poised to avail of the opportunities afforded by the World Cup in 2010 and the accompanying digitisation project for SA's broadcast sector.
"The group's telecommunications division is also well situated to take advantage of the market growth envisaged over the next five years and beyond."
Palmer says initiatives are underway aimed at increasing annuity income and producing more steady revenue streams.
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