Business software group Solution 6 Holdings signalled better times ahead on Wednesday, despite reporting a net loss of AU$79.48 million for the 1999/00 year, weighed by a AU$67.51 million abnormal loss.
"Considerable revenue growth and a significant improvement in operating profits will occur over the next 12 months," Tom Montgomery, Solution 6's chief financial officer said in a statement to the Australian Stock Exchange. He said the firm had seen rapid growth over the past year and its acquisition strategy and focus on cost control would help boost revenues and profits going forward.
According to Barra Global Estimates, analyst forecasts for pre-abnormal net loss ranged between a AU$5 million gain and AU$14.2 million loss and centred on a net loss of AU$12.9 million.
Solution 6 said below forecast sales, due to the impact of Y2K, costs associated with the integration of the 11 companies acquired over the last year, and the establishment of internal systems contributed to the pre-abnormal loss.
The firm said revenues for the past year climbed to AU$179.55 million from AU$74.29 million in 1998/99, with revenues from its consulting business exceeding AU$100 million.
The abnormal loss was attributed to capitalisation of research and development expenses and restructuring costs. Solution 6 shares added seven cents to AU$3.17 by 11:10 am, but are still 81 percent off their AU$17.02 2000 high.
The past financial year has been a tumultuous one for Solution 6, with ebullient former chief executive Chris Tyler quitting after previous drug convictions and his association with failed Canadian company Lessonware came to light.
Its proposed merger with US-based Elite Information Group was called off and a bid for Pegasus Group was trumped.
A three-way tie-up deal between Solution 6, its major shareholder Telstra and Internet group Sausage Software also unravelled.
