IT services group Volante (ASX:VGL) announced its previously forecast decreased revenue and profit for the six months to 31 December 2005 on the same day as acquirer telecoms equipment supplier, Commander (ASX:CDR), announced the acquisition of its first significant bundle of shares, since the merger was recommended by the Volante board.

In line with its revised forecast in November 2005, Volante reported an after tax profit of $2.0 million, down from $5.5 million in 2004. Revenue was $194.4 million, down from $203.6 million for the corresponding half in 2004. A shareholder's dividend of 2c per share was declared.

Ian Penman, group managing director, said: "While within previous guidance, the results reflect the significant challenges we faced in taking tough actions to realign the company, and position ourselves for future growth. The first half was negatively impacted by one-off restructuring costs of $1.9 million, tendering costs of $1 million, lower-than anticipated revenue from product sales and a higher than acceptable cost structure."

The results barely caused a ripple in the market, with VGL shares closing unchanged on $1.14, although the shares were well traded.

It was perhaps serendipitous that on the same day as the Volante results announcement, Commander announced the acquisition of 1,583,407 ordinary shares of VGL stock, amounting to 1.23% of the company, arising from acceptance of offers contained in Commander's offer documents.