JSE-listed Idion has suspended talks with an international software company until the global technology market gets back on track.
Idion has been trading under cautionary since the end of last year as a result of the talks with an international software company. However, management withdrew the cautionary today saying talks would only resume when international markets stabilise.
The company made use of the opportunity to update shareholders on other news. Most notably, Idion warned that revenues of its US subsidiary Vision Solutions have also been affected by the US slowdown.
Management says if the conditions persist, investors should expect turnover of between $33 million and $35 million rather than the anticipated $35 million to $38 million.
Idion pointed out that the first half of the year is traditionally the slower period, with Vision usually only achieving between 30% and 35% of its revenue in the first six months.
Results to December, including nine months of operations at Vision, showed that the US software company has turned itself around to report a net operating profit of $4.8 million, compared to a loss of $690 000 in the previous nine-month period.
The Europe, Middle East and Africa region has kept its head above water and Idion expects it to be cash positive by the interim stage.
South African operations are also performing in line with expectations and management foresees a profit for the full year.
The local division is now headed by Ken Jarvis, ex-CIO of Naspers, who had significant dealings with Multichoice`s TV commerce initiative.
The counter made up some of the ground it lost on yesterday`s market, moving up to 155c from today`s 147c open, due in part to Idion allaying the speculation that was rife in the market about goings on at the company.
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