NetComm's great leap forward - into services

Stuart Corner
Friday, 23 November 2007 07:39

IT Industry - Deals

When it announced those results, the company forecast a return to profitability in the first half of 2006-2007 but the result went in the opposite direction. Net loss after tax was $1.35 million, exceeding the one year loss of $1.2 million for 2005/2006.
However the company was able to turn around an achieve a small second half profit of $14,000 to give a full year loss of $1.3 million.

Winter told the AGM this week: "We are pleased to confirm today that the turn-around has been successful and the company is performing as it should. We believe we have created a platform for profitable growth in the future. The development of new VoIP products and the restructure and integration of last year's acquisition of Dynalink New Zealand into our business is now complete.

"We are pleased to advise that the NZ operation is now performing very well and is contributing nearly half of our earnings so far this financial year. We are seeing significant improvements in performance resulting from tight cost control and an increased gross margin driven by the change in product mix – a shift towards higher value, higher margin products for the small and medium business sector which began in 2006."