During the third quarter Citect grew its revenue by 25% to $16.9 million and increased profit before tax by $2.2 million to $1.8 million versus the same period in the prior year.
Citect put its stronger than expected performance down to changes made during the seconmd quarter, involving a restructure of the organisation.
Key changes made during the restructure included:
'¢ The flattening of the organization to become more nimble and responsive to markets
'¢ Realignment of regional sales teams and implementation of a CRM software system (salesforce.com)
'¢ Realignment of the product management teams and the introduction of product P&L accountability
'¢ Appointment of a new Chief Financial Officer, Chief Technology Officer, and Chief Marketing Officer
'¢ Introduction of a new global Director of Professional Services and a new global Director of Support and Training
According to Citect he strong improvement in the 3rd quarter results was delivered in large part through improved sales execution and a more effectively streamlined cost base. All global product sales were up versus the same period last year; SCADA (+9%), Ampla (+67%), Support & Training (+45%), and Professional Services (+14%). Strongest growth geographically came from the North America (+76%) and Oceania (+14%) regions.
'The strong momentum in the third quarter is expected to carry into the fourth quarter as we launch a new product (patent pending), introduce upgrades to our SCADA and Ampla products, and close a number of significant Ampla (MES) contracts in the pipeline. We continue to believe that the next generation of business improvement systems will come from the implementation of real-time business intelligence software and the implementation of business improvement solutions and systems. Citect is well positioned with its current strong SCADA offering, emerging next generation MES offering (Ampla), global distribution footprint, innovative product development plans, and it's blue chip client base to exploit these emerging trends', said Richard Webb who joined Citect as the managing director and CEO in April 2005.
The company's profit before tax in the second half of 2005 is expected to be approximately $4.0 million, up from guidance of in excess of $2.4 million given in June 2005. Given the prior announced first half result, full year profit before tax is expected to be approximately $5.0 million, after restructuring costs and other one off items in excess of $1.0 million and interest revenue of approximately $0.2 million.
CTL shares climbed 6c to close on $1.01 in a solid day of trading.