SDL
11/03/2015 08:54
GENERAL
PRICE SENSITIVE
REL: 0854 HRS Solution Dynamics Limited
GENERAL: SDL: Solution Dynamics' Material Expansion
Solution Dynamics Limited ("SDL"), on 10 March, finalised an agreement with
Fuji Xerox New Zealand Limited ("FXNZ") which sees SDL appointed as an
accredited partner for the provision of all print and mailing services for
FXNZ's Document Management Solutions ("DMS") offering in New Zealand.
Fuji Xerox has a well-developed Document Management Solutions (DMS) business
internationally and has chosen SDL to act as its preferred provider of key
portions of its DMS business in New Zealand including print imaging, mailing
and certain print-related data services.
Fuji Xerox provides DMS extensively throughout Australia and the Asia Pacific
region and has a substantial share of the business process outsourcing market
in Australia, notably in the banking and finance, telecommunications, utility
and government sectors.
Under the agreement SDL will install the latest Fuji Xerox high-speed,
continuous digital imaging equipment and associated document handling
equipment. SDL will extend its specialised print clean room to accommodate
the larger equipment and an initial estimate suggests this will require
capital expenditure of around $300,000. This cost is only an indication as
the print room specification has yet to be finalised.
Initial indications suggest SDL should see revenue growth of at least 5-10%
in the first full 12 months of operation although this is a very preliminary
view and it is unclear how quickly the revenue ramp will occur. While
ongoing print costs are largely variable, some upfront costs will be incurred
in the setup and it is not certain whether SDL will begin operations late in
the second half of FY2015 or, more likely, in early FY2016. Until this is
clarified, SDL cautions that while it is maintaining current FY2015 pre-tax
earnings guidance of over $700,000 there is now a higher degree of
uncertainty around this forecast.
For further information please contact:
John McMahon
Chairman
+61-(0)410-411 806
Nelson Siva
Managing Director
+64-(0)21-415 027
End CA:00261698 For:SDL Type:GENERAL Time:2015-03-11 08:54:45
