Shares in Data#3 Limited (DTL), jumped by more than 6% yesterday after the company confirmed that the interim profit for the 2009-10 financial year would be consistent with previous guidance.
"While yet to be finalised and reviewed by the company’s auditors, a profit before tax of approximately $6.8M is expected for the first half of 2009/10.
"This represents an increase of approximately 16% on the 2008/09 first half result of $5.85M," the company told the ASX.
The shares rose strongly in early trading and remained up, despite the generally weaker market tone.
They closed up 6.3% at $9.20, a rise of 55 cents for the day.
The company said revenue is expected "to increase approximately 34% overall with product revenues increasing approximately 40% and services revenues expected to be similar to that of the previous period.
"The growth in product revenue was attributed to changes in timing for billing of the Federal Government Microsoft licensing contract and a key state government contract and strong revenue growth in Product Solutions particularly in New South Wales and Victoria.
"Services revenue reflected a decline in recruitment and contracting revenues offset by strong growth in Managed Services.
“With investment in information technology in the government and corporate sectors remaining constrained, this strong performance can be attributed to our national presence and the tenacity with which our people continue to pursue winning in the market,” commented Data#3 Managing Director John Grant.
The Board indicated its intention to continue dividend payout rates similar to that in the 2009 year and will announce the final first half results and the interim dividend on 22 February 2010.
