Perth tech pair moving in the right direction

AMID continued uncertainty about the viability of many technology companies, two listed Perth companies have reported strong quarterly financial results.

Amcom Telecommunications Ltd is predicting it will beat its own earnings forecasts for the 2003 financial year.

In announcing that its core broadband business had generated just more than $5 million for the June 2002 half, the company’s management said they were confident that EBITDA predictions made in April this year would be exceeded and Amcom would report a maiden net profit for the current financial year.

Meanwhile, in reporting a positive net operating cash flow of $6.3 million for the fourth quarter 2001-2002, has flagged rationalisation and amalgamation plans for its wholesale and mail order businesses. The move is expected to reduce costs and improve efficiency in those divisions throughout the 2002-2003 financial year.

At $42.3 million, the company’s customer receipts were up by nearly $10 million on the March quarter, and net cash flow was up by $400,000 to $5.6 million, taking Adultshop’s cash reserves to $17.5 million.

The company said the increase in cash flow was a result of the successful implementation of growth opportunities in the online entertainment business, Today’s Success Pty Ltd.

Sales initiatives in the online entertainment division had been highly successful, a statement said, and AdultShop directors expect the positive trend to continue in the coming quarters.

Amcom’s half-year result was 23 per cent higher than the preceding December 2001 half figure of $4.08 million, and 57 per cent more than the previous corresponding half figure of $3.19 million.

On a quarter-by-quarter basis, Amcom’s June quarter revenues were 9 per cent higher than those reported for the March quarter, and represented an increase of 129 per cent over the previous corresponding period (June 2001 quarter).

Total group revenues for the June half were $5.7 million, including $700,000 in non-core revenues. The broadband revenue figure of $5.01 million included a contribution of $1.2 million from Amcom’s network management services, Rescue Group.

Amcom’s management attributed the results to the completion of the company’s rational-isation of core and non-core business, including the sell down of its stake in the IP1 project, which is laying optic fibre from Perth to Melbourne, and the discontinuation of the company’s project-cabling group.

Amcom, a passive 26 per cent investor in the IP1 project, said IP1 was now operational between Melbourne and Adelaide, with completion of the balance of the build to Perth expected by early 2003.

The changes improved operating efficiencies and reduced expenses and, combined with growing sales, led to the improvements in EBITDA margins on a half-on-half basis.


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