any thoughts on result?, page-4

My two cents cents worth on the DWS result.

POSITIVES
I liked the strong operating cash, almost double the NPAT. What this means is that DWS has $16m in cash to make acquisitions (they're trying but can't find good enough value .. so far).

This is a well run company over a number of years. They pay reliable dividends, and do not dilute shareholders.

In spite of industry headwinds, DWS has segments of growth ie. Managed application services, digital automation and business analytics. Importantly the margins on these segments appear good.

While no forecast has been made for FY14 by DWS, this is typical, the company is conservative in making outlook statements. My interpretation of management's comments about 'expecting to increase headcount in 2H2014' as mildly positive.

NEGATIVES
Government spending on IT unlikely to pick-up in near term.

DWS's main source of revenue (solutions development /integration) remains very competitive and subject to lower margins. This is borne out by SMX's result and other players. Both companies have set up Asian operations to help protect margins.

Danny Wallis moving out of CEO position (though I believe he still will be actively involved as executive chairman).

Personally, I'm willing to ride through this difficult time, particularly in light of the strong Balance Sheet.