CommSoft expects profit next year

By Phil Boeyen, ShareChat Business News Editor

Friday 15th March 2002

Telco software firm CommSoft (NZSE: CSG) has halved its first half losses to A$3.8 million and says it expects to be profitable next financial year.

The December end interim result compares to a loss of A$6.26 million previously. Sales revenue fell 66% to A$1.39 million.

Chairman Greg Gardiner believes the much improved bottom line performance shows the business is on the right track.

"The slowdown experienced in the final quarter of 2001 resulted in significantly lower sales than expected, particularly in the UK, the group's largest market, and this had an impact on our first half results.

"Nevertheless focus on the group's cost base continues to be a key task for management and reductions in costs combined with improved sales channels bring profitability much closer."

Mr Gardiner says the second half should show further significant progress and from next financial year the group expects to be profitable.

Group MD Mark Lunt has pointed to new distribution channels in the UK, the US and Australia as further grounds for cautious optimism.

"Delivering significantly improved performance against a background of global economic slowdown and the toughest conditions in the IT sector in living memory has not been an easy task, but we have made considerable progress."

Mr Lunt says the company has dramatically reduced costs with staff numbers falling from 150 in April last year to fewer than 40. He says management and staff remain committed and focused on delivering results to shareholders.

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