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DATA#3 LIMITED Interim / Quarterly Report 2005
64791_rns_2005-02-22_9c9d74d3-4e2c-4cd5-b93b-3abe1aa1b502.pdf
Interim / Quarterly Report
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Data#3 reports first half result at top end of expectations
Record interim dividend
BRISBANE, Tuesday 22 February 2005. The Board of Directors of Data#3 Limited (ASX:DTL) today announced that, following an increase of 16% in first half earnings over the previous corresponding period, it had declared a fully franked interim dividend of 7.5 cents per share to be paid at the end of March.
Richard Anderson, Chairman of Data*3 commented: "The company's share price has improved substantially, supported by a yield that remains one of the highest of ASX-listed IT companies."
Financial Highlights
| July to December |
July to December |
% Change | |
|---|---|---|---|
| 2004 | 2003 | ||
| Total Revenue | \$94,908,000 | \$88,289,000 | $+7.5%$ |
| Product sales | \$76,331,000 | \$73,146,000 | $+4%$ |
| Services | \$18,116,000 | \$14,859,000 | $+22%$ |
| Other | \$461,000 | \$284,000 | |
| EBITDA | \$3,102,000 | \$2,749,000 | $+13%$ |
| NPBT | \$2,685,000 | \$2,330,000 | $+15%$ |
| NPAT | \$1,802,000 | \$1,552,000 | $+16%$ |
| Earnings per share | $11.9$ cents | $10.5$ cents | $+13%$ |
| Dividend per share | 7.5 cents | 6.0 cents | $+25%$ |
Commentary on Performance
- Product revenue increased 4% due to growth in the software licensing business
- Services revenue increased 22% due to growth in general IT services, particularly in outsourcing, and in recruitment services.
- The overall gross margin percentage remained virtually unchanged during the half, $\bullet$ producing an increase of approximately 5% in total gross margin generated.
- Staff expenses as a percentage of gross margin contribution decreased over the previous year and ended the half ahead of target.
- Positive underlying net operating cash inflow of approximately \$1.5 million
- Interest bearing debt remained minimal.
"In a relatively buoyant but competitive market, we reported our strongest ever first half at the top end of expectations and believe we are well placed for another strong year," said Data*3's Managing Director, John Grant. "We have worked with many new customers including Coca Cola Amatil, DaimlerChrysler, Metcash Trading, Sandvik, Time Warner Entertainment and Virgin Mobile, and will look to grow our relationship with them in the second half and beyond. Engagement with our key vendors has continued to strengthen and we remain committed to our strategy of building our business based on industry-leading expertise."
"While nothing can be assumed, we are projecting second half performance at least in line with the first," he said.
About Data#3
Since listing in 1997, Data#3 has evolved from a Queensland oriented IT Solutions Company to one of national significance. In our first year of listing, Data*3 revenues were \$69 million and staff numbered 250. In 2004 revenues were \$176 million and over 400 staff served customers from offices in Brisbane, Sydney, Melbourne, Canberra, Rockhampton and Gladstone.
As an IT Solutions Company, Data#3 seeks to provide value to its customers from their IT investment by providing expertise in:
- Business solutions delivered through application software $\bullet$
- The design, implementation and management of reliable technology infrastructure
- Cost effective procurement of IT hardware and software
- Sourcing the right IT people.
Data*3's customers cover a wide range of industries including banking and finance, mining, tourism and leisure, legal, healthcare, manufacturing, distribution, government and utilities and are located throughout Australia and into Asia.
For more information visit www.data3.com.au.
-ENDS-
Media Contact - for further information please contact:
John Grant Managing Director Data#3 Limited Tel: 07 3371 8088 Mob: 0411 429 930
Brem Hill Chief Financial Officer Data#3 Limited $Tel:$ 07 3371 8088 Mob: 0411 887 182