Sharing its first half financial results, Datalex plc.....

Published: 24 Aug 2006

Sharing its first half financial results, Datalex plc.....

Sharing its first half financial results, Datalex plc stated that its profit for the period amounted to $1.6 million in comparison with $1.0 million during the same period last year.

Total revenues were $12.4m ($14.4m in the first half last year), while in line with expectations, E-Business revenue reduced to $8.9 million ($ 11.5 million during the same period last year).

The reduction in E-Business revenue was primarily due to migration towards the transactional model which forfeits short term licence revenue for potentially longer term earnings. TPF consulting revenue increased to $3.5 million ($2.9 million during the first half last year) due to an upturn in this market and tighter integration with the rest of the business.

The gross margin declined to 26.6 percent in this year’s half, down from 39.4 percent for the same period last year.

The company shared that this was due to the predicted decline in E-business revenue and lower margins earned on the increased TPF consulting revenue coupled with an increased cost of sale.

Cormac Whelan, chief executive officer, Datalex said: “We have made considerable investment in the airline functionality of our product suite over the last eighteen months and are expanding our development to productise our ‘leisure’ based solutions. This focuses our efforts on expanding our functionality in the dynamic packaging and hosted price and inventory areas. As airlines and travel companies become more strategic about developing alternative distribution and revenue channels this becomes an important part of their infrastructure.”

“We continue to be successful in closing transaction revenue contracts but as noted previously these do
not add to revenue in the short term. A number of significant customers are expected to ‘go live’ on the
transaction based model in Q3 and Q4 2006,” he said.