Industrial software developer ISS Group has reported a strong 52 per cent increase in half-year net profit to $1.2 million on the back of a similar 54 per cent lift in revenue.
In its interim report released today, the company said its half-year result was reduced by some $1 million for non-cash share based expense arising from key performance hurdles met by executives. (An earlier version of this article incorrectly reported that the expense related to bonus payments to key executives.)
Revenue for the six months to the end of December 2008 was up 54 per cent to $11.2 million while profit before tax and non-cash share based expenses rose 28 per cent to $2.2 million.
All of the company divisions reported substantial increases in revenue with the licence division reporting a 131 per cent jump in sales to $4.1 million, including licence payments from Schlumberger.
"The results reflect a significant contribution from the Group's Asian operation, which has capitalised on several large contracts during the period," ISS said.
"The BabelFish licence pre-purchase by Schlumberger under its five year contract was also a major contributor.
"This pre-purchase is contracted to increase annually for the next three years of the contract."
ISS added that the industry outlook for ISS "looks steady" with the company set to gear towards the oil and gas sector, which is performing relatively well, as the minerals industry slows down.
Despite a healthy half-year report, the company has decided to hold off on paying a dividend in light of the lower oil and commodity prices, which is "creating sufficient uncertainty to give cause for caution to the Board of ISS".
Last month, ISS withdrew its profit and dividend guidance in light of the global downturn.
At the end of the reporting period, the company had $4.1 million in cash and cash equivalents, up from the previous corresponding period's $3.4 million.
Shares in ISS were up 0.5 cents to 15.5c at 14:22 AEDT.
