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DATADOT TECHNOLOGY LIMITED — Earnings Release 2011
Feb 7, 2011
64764_rns_2011-02-07_0d35b445-1a31-470d-9a90-bbedfd9ec3d0.pdf
Earnings Release
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DataDot Technology Limited ABN 54 091 908 726
Securities Exchange Announcement
8[th] February 2011
- Half Year Results Update
The Directors of DataDot Technology Limited (ASX:DDT) announce that net earnings for the half-year to 31[st] December 2010, subject to completion of the halfyear audit review, are expected to be in the range $450,000 - $480,000. This compares with $632,000 for the corresponding period last year, which included the one-off advance marketing rebate referred to in the Share Purchase Plan Offer Terms to Shareholders dated 12[th] November 2010.
Both income and expenditure have contributed to the variation in half-year results. On the income side, total revenue was approximately $1 million less than the firsthalf last year, which is greater than the decline anticipated by directors when the announcement was made at the AGM on 26[th] November 2010 that revenue may be down against the corresponding period last year. Several expected sales orders were not received by 31[st] December 2010, in particular from European customers, which reflected greater softness than anticipated in the European vehicle market. Further, not all DataTrace DNA orders received before 31[st] December 2010 were completely fulfilled by the end of the reporting period.
On the expenditure side, although total expenses were 2% lower than the first-half last year, they are higher than would otherwise have been achieved due to the decision to fund several key steps in the company’s announced growth strategy. Additional expenses incurred specifically to generate growth over the longer term included the appointment of business development personnel, an increase in marketing expenditure and the transaction costs incurred in acquiring the CSIRO’s half-share of DataTrace DNA Pty Limited, which included full absorption in December of DataTrace DNA costs as well as its income.
Following acquisition of CSIRO’s half-share, DataTrace DNA Pty Limited is now accounted for and consolidated as a wholly-owned subsidiary of DDT. As part of the acquisition, DDT’s investment in DataTrace DNA Pty Limited was revalued to reflect fair value, resulting in a one-off gain of approximately $550,000.
It is expected the Half-Year Directors’ Report and Appendix 4D will be issued on 18[th] February.
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Contact Information: DataDot Technology Limited Ben Bootle, CEO Phone: +61 (02) 89774900 e-mail: [email protected] web site: www.datadotdna.com