Mincom has record Q4

Stan Beer
Wednesday, 02 August 2006 13:58

IT Industry - Strategy

Australia’s largest commercial software developer, Mincom Limited, has announced a record fourth quarter, which has pushed its annual revenues close to the $200 million mark.

Mincom stated that total revenues are expected to be between $199 million and $200 million, a 20% increase over the fiscal 2005 result of $165 million.  This includes full year 2006 software revenue of approximately $32 million, an increase of around 40% over fiscal 2005 results of $23 million.
 
Fourth quarter software revenues are expected to be approximately $15 million, an increase of approximately 90% when compared to 2005 fourth quarter software revenues of $8 million.  This result represents the largest fourth quarter in the company’s 27-year history.

Consulting revenues are expected to exceed $88 million, an increase of 30% over fiscal 2005 result of $68 million.

“We are very proud of this result,” said Mincom Chief Executive Officer Richard Mathews.  “Mincom’s commitment and focus to deliver the solutions and services our customers need, continues to earn their confidence.  This is an exciting time for our company."

Based on the preliminary results, Mincom expects operating profit before income taxes to be between $11 and $13 million, more than 3 times fiscal 2005 result of $3.5 million.  

“Our result reflects a positive year for Mincom, with all revenue streams improving significantly.  It demonstrates our concerted efforts to respond to customer needs and issues across the industries in which we operate.  We grew in each geography and this growth was well balanced between our core verticals of mining, defence, utilities, transportation and government,” Mr Mathews said.
 
During the year Mincom added over 100 new customers globally.

Among some of the regional highlights:

* Australia: Mincom won major new contracts with Oxiana and Xstrata Copper together with significant projects in the government sector.  License revenue grew by 20%.
* North America: Mincom license revenue grew by 73% with major new customers including Indianapolis Transit Authority, Magnum Coal, Agnico Eagle, Philip Morris, Western Canadian Coal and Codelco.
* Latin America: Mincom licence fees grew by 61% and won new customers in Brasil (CVRD, CSN), Chile (Enami) and in Mexico and Peru where Southern Peru Copper and Gruppo Mexico standardised on Mincom products.  Strong growth was experienced with Mincom LinkOne products into BHP, Komatsu, Antamina and Spence.  
* Eurasia: License revenue grew by 51%.  In Mongolia, Mincom signed its first new customer, Centerra Gold.  In Russia, Mincom added new contracts with SeverStal Resurs and Raspadkaya as well as extending its relationship with Norilsk Nickel.  Mincom now counts the top three mining companies in Russia as customers.
* South Africa:  Mincom grew strongly in Africa, adding five new customers in the last three months, including Tanzanian Defence Forces, Northam Platinum and Umcebo.  License revenue grew by 137%.