London-listed Intec Telecom Systems attributes its 41% hike in revenue to lb31.4 million (R376.4 million) for the past six months to improving conditions in the international telecommunications sector.
Founded by UK-based South Africans, Intec has made a niche for itself in supplying operational support systems (OSS) used for cross-billing of telecoms connections across multiple networks, throughout the world. Intec has research facilities in Cape Town, Europe and the US.
According to Intec`s results statement released today, during the interim period ended 31 March, earnings before interest tax and amortisation surged 212% to lb3.1 million (R37.2 million) and earnings per share climbed 130% to 1.15p (12.5c).
The company also attributes the gains to increased revenues from professional services and recurring business, and generally improved trading conditions in the telecoms sector.
"Trading conditions continue to be healthy, and providing these remain stable, the board is confident of satisfying full-year expectations. In addition, the company is engaged in several major opportunities which, should they conclude and be recognisable in the current year, will enhance Intec`s financial performance for the full year," the results statement says.
Intec says during the past six months it signed 42 new contracts, of which 38 were with new customers, and it now has 574 installations with 400 telecoms operators.
However, the depreciation of the dollar has negatively impacted the company`s revenue and earnings, reducing them by lb1.3 million (R15.6 million) and lb0.6 million (R7.2 million) respectively.
"The depreciation of the dollar continues to impact us in North America, but we have still seen strong contributions from all regions, with particularly impressive growth in Asia-Pacific and Latin America," says chief executive Kevin Adams.
"Our ability to secure major contracts is growing steadily and I am pleased to note that we have won a number of high value, multi-product deals from our enlarged OSS portfolio."
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