JSE-listed technology innovator, Spescom Limited, today announced headline earnings of R20.6 million, translating into 39.1c per share for the interim half year ending 31 March 2004.
The group reports a 50% increase in trading profits for the first six months, when compared to the corresponding period last year. Foreign exchange gains represent 20% of operating income as opposed to 50% for the first half of 2003.
According to Spescom's executive director, corporate finance, Hilton Isaacman, sustained profitability can be attributed to improved margins on proprietary product revenues, combined with continued prudent management of operating costs.
"Trading profits increased despite a 7% revenue decline when compared to the first fiscal half of 2003. This reflects a significant improvement in the quality of earnings. 50% of earnings were generated from proprietary technology sales," says Isaacman.
Isaacman highlights the improvement in the group's gearing levels with substantial debt repayments effected subsequent to year-end.
He adds that post balance sheet events include the conclusion of a R24 million BEE equity transaction with Vantage Capital Fund Managers (Pty) Ltd.
"The cash raised from the Vantage deal will be used as working capital for expansion purposes."
Isaacman says Spescom's strategy remains focused on the globalisation of its business, utilising proprietary products and intellectual property.
"The immediate challenge facing Spescom, in pursuance of its globalisation objectives, is to increase sales and marketing activities primarily in the US and Europe. In this regard, various offshore fund-raising initiatives are being explored."
Isaacman concludes that the outlook for the remainder of the financial year is positive.
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Spescom is a multinational technology innovator with direct operations in the US, UK and SA.
The group is publicly listed on the JSE Securities Exchange SA (Spescom Ltd), and on the NASDAQ OTCBB : SPCO (Spescom Software Inc).
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 and First National Bank.
For more information on Spescom, please visit www.spescomsoftware.com.