Datalex records net loss totalling €664,000

TRAVEL software firm DATALEX recorded a net loss of $900,000 (€664,000) for the first six months of the trading year 2007.

During the period the group said its performance was hit by the continuing investment in its product range and to a lesser extent by cost pressure in a competitive market.

A weakening US dollar also took some further gloss from this financial year’s first half figures, the group said.

For the six months ended June 30, it posted a pre-tax loss of $855,000 compared to a profit of $1.6 million on the same period last year.

A major factor for the change in the company’s fortunes was a restructuring charge of $1.2m in the first half of the year.

Revenue for the period grew to $15.7m from $12.4m boosted by e-business sales that rose 44% to $12.8m from $8.9m in the first half of last year.

Datalex said it is continuing to write new business that does not add to revenue in the short term.

Chief executive Cormac Whelan said the first tangible benefits of Datalex’s transition from a licence-based to a transaction-based business model were evident in the first half of 2007.

He said the results also continue to demonstrate the group’s commitment to invest in its core product offering, with investment of $2.1m pumped into the development of the software it produces over the period in question.

That has brought the total amount spent to just under $12m in recent years as the group gears up to meet the needs of the travel sector in an increasingly competitive market.

Datalex has already delivered software to the airline industry and additionally offers software programmes also to the broader leisure market.

Among its customers are two of the world’s largest travel agencies, Flight Centre and STA Travel.

Looking to the future Mr Whelan said “the combination of our business model and our product leaves us with a strong pipeline of potential new customers”.