Spescom's US subsidiary, Spescom Software, achieved break-even on an EBITDA (earnings before interest, tax, depreciation and amortisation) basis in the fourth quarter of its financial year.
Total revenue for the quarter to 30 September was $1.9 million compared with $1.8 million for the same period of 2001. The net loss was $1.3 million, or $0.04 per share for the quarter, compared with a net loss of $1.3 million, or $0.04 per share, for the same period last year.
The latest loss included a write-down of $865 000 of certain of the company's older capitalised software costs to net realisable value.
Total revenue for the year was $7 million, compared with $11.2 million for the previous year.
The net loss was $5.8 million, or $0.19 per share, compared with a net loss of $1.3 million, or $0.04 per share, for the year to 30 September 2001.
EBITDA for the quarter was $9 000, or $0.00 per share, compared with a loss of $907 000, or $0.03 per share, for the year-earlier period.
EBITDA for the year was a loss of $3.48 million, or $0.11 per share, compared with the prior year's loss of $237 000, or $0.01 per share.
"We are very pleased to have achieved our goal of breakeven on an EBITDA basis for the fourth quarter and are entering into our new year with substantial momentum," says CEO Carl Mostert.
"We ended the year with the recently announced order from Railtrack of over $1 million and since year-end have received further orders from Railtrack and other customers totalling approximately $1 million."
Mostert says he is optimistic that the company can continue its turnaround in the 2003 financial year.
"Although the current high level of economic uncertainty makes it difficult for the company to predict with accuracy its future results, the company estimates that for fiscal 2003, the company can achieve revenue growth of approximately 30% to 45% over fiscal 2002 revenues to a range of $9 million to $10 million.
"If these revenue targets are achieved, we anticipate that a gross profit percentage of over 65% for fiscal 2003 can be reached, plus or minus three points, up from 37% in fiscal 2002.
"In addition, we anticipate EBITDA in the range of $800 000 to $1 million, or $.03 per share. The company expects that the achievement of these revenue and gross profit levels would allow the company to begin generating profits during the second half of fiscal 2003 and reach breakeven for the year on a net income basis."
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