By NZPA
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Friday 2nd August 2002 |
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GDC will pay a dividend of 1.75 cents per share on September 20.
Revenue fell almost 12 percent to $29.98 million for the period ended June 30, reflecting the sale of GDC's former eftpos and Aerial business units in the second half of 2001, GDC chairman Stuart Johnstone said in a statement today.
Until 2001 GDC operated as two divisions, PABX supplier NexGen, and contracting, which maintains and extends Telecom's network in large regions.
The NexGen division operations included iVASP, GDC's new application service provider business, which has produced a profit following an investment of $9 million in the last three years.
iVASP sales for the half-year were $1.7 million, $1.3 million ahead of the same period last year.
The contracting business achieved sales in line with last year's $20.0 million.
GDC said the demand for traditional systems continued to decline, with the market moving in the direction of convergent IT and telecommunications systems, reducing sales to $8 million from $11.6 million.
During the period, interest-bearing liabilities (borrowings and finance leases) increased by $800,000 to $5.16 million. The borrowings included $2.20 million of investment expenditure during the half year.
"While the iVASP business unit has been one requiring significant investment, both contracting and NexGen have been strong positive cash flow contributors enabling the group to fund its operations and maintain a consistent dividend stream to shareholders," Mr Johnstone said.
GDC shares last traded yesterday at 99c, compared with a year high of $2.15 and a low of 97c.
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