Datalex announces improved earnings, but warns of slow H2

ISEQ-listed travel software company Datalex plc has reported a profit of $81,000 (€67,200) to June 30, 2004 due to growth in revenues and cuts to the company's cost base.

The $81,000 (€67,200) profit excludes goodwill amortisation of $440,000 (€365,000), foreign exchange losses of $258,000 (€214,000) and net interest income of $205,000 (€170,000), indicating a return to profitability for the company.

This compared with a trading loss of $4.4m (€3.6m) for the first half of 2003. Including goodwill amortisation, foreign exchange losses and interest income, the loss on ordinary activities before taxation reduced from $5.6m (€4.6m) in H1 2003 to $400,000 (€332,000) in H1 2004.

Revenues increased by 6% to $15.5m (€12.6m) from $14.6m (€12.1m) in H1 2003. This reflected income from continuing contracts as well as new deliverables to Malaysia Airlines and American Express UK.

Operating expenses reduced to $6.4m (€5.3m) in H1 2004 from $9.9m (€8.2m) in H1 2003.

Datalex's customers include Aer Lingus, Air Canada, American Express, Delta Air Lines, Deutsche Telekom and Siemens UK.

Founded in 1985, the company is headquartered in Dublin and maintains offices across Europe, the USA and Asia-Pacific.

Datalex said the industry continued to suffer from long lead times between contract negotiations and revenue generation.

"This, and anticipated lower consulting revenues is likely to hold back revenue growth in H2 2004," the company said.