Solution 6 Holdings has foreshadowed a net loss of AU$138 million for the financial year, following a review of its business activities that slashes AU$86 million off its bottom line.
The IT solutions company reported a loss of AU$121 million for the half year and an EBITDA loss of AU$24.3 million for the six months to December 31.
However, "following an extensive reconstruction program" Sol 6 now expects monthly EBITDA will become positive during the fourth quarter of this financial year.
The company claims to have taken a "more conservative approach" in determining its EBITDA result, which now includes items previously treated as abnormals, such as ASP, Web and Portal development costs of AU$11 million.
The half-year results include write downs associated with the goodwill from acquisitions and the value of software systems and distribution networks amounting to AU$66.2 million which is included in the total AU$86.6 million abnormal charge, according to the company.
Sol 6 reported revenues of AU$128.5 million for the six months ended December 31, 2000 and revenue for the full year is forecast at AU$282.9 million.
"The reconstituted Board and a substantially new management team have reviewed the Group's operations and the future economic benefits to be derived from previously acquired businesses which has resulted in substantial write downs in the balance sheet," Solution 6 CEO Neil Gamble said in a statement.
"The team is working towards producing sustainable profits from all its activities," he added.
"The cash burn from our operations is now under control."
