C10 boosts profits through IP centrex

Stuart Corner
Friday, 17 February 2006 04:47

IT Industry - Strategy

C10 Communications, a subsidiary of ASX-listed Lemarne Corporation has tripled profits in the half year to 31 December, partly through its ValueNet IP centrex offering.

Lemarne bought ValueNet, which offers IP centrex services off a Vocaldata platform, in July 2004. In its half year results released to the ASX on 16 February, Lemarne said: "The operating profit before tax for C10 Communications, comprising the products and ValueNet businesses, for the first half of 2005/06, is triple the profit achieved in the corresponding period last year. This improvement in profitability has resulted from increased sales revenues in an increasingly competitive market. ValueNet also contributed to this result with lower than anticipated start up costs during the continued establishment of the business during the six months.

"The services being delivered from the ValueNet network have proven to adequately meet the requirements of its intended business market. The back office implementation satisfies present requirements for provisioning, billing and supplier reconciliation.

The ValueNet business was formally accredited to ISO 9001:2000 and incorporated within C10's overall quality accreditation in December 2005.

Lemarne added that C10's 2006 strategy to accelerate reseller sales through the appointment of dedicated channel sales staff in Sydney and Melbourne, together with a sales and marketing manager  had been fully implemented in December 2005.

"With these resources now in place, management's focus is on achieving the transition to becoming a profitable business in the June 2006 quarter."