Document date: Thu 20 Mar 2003 Published: Thu 20 Mar 2003 14:47:17 Document No: 152041 Document part: A Market Flag: Y Classification: Periodic Reports - Other QUADTEL LIMITED 2003-03-20 ASX-SIGNAL-G
HOMEX - Brisbane
+++++++++++++++++++++++++ Quadtel Ltd (ASX: QTL), is pleased to advise shareholders that February 2003 was profitable as forecast at the company AGM in November 2002 and the announcement made on 14 February 2003.
"Following on from our cost reduction initiatives and re-focussing our sales efforts on higher profit margin products, achieving a profit in the month of February completes the first phase of re-structuring of the company" commented Bruce Ind, CEO of Quadtel. "The next phase will be to grow monthly profits from the company's key activities to the end of the financial year. Importantly, with a stable profit baseline, the company is now positioned to capitalise on its investment in China."
Quadtel's high margin products have delivered a significant contribution to the company since December 31. The company currently republishes titles for five vendors - ScanSoft (Dragon NaturallySpeaking product line), Arcsoft, Panda Software, Newtech InfoSystems and Transparent Language and the contributions from those vendor lines are an enormous part of the gross margin for the company. As explained in previous press releases, this model involves less upfront working capital with royalties paid against sales, thereby resulting in very low inventory costs.
ScanSoft who have just renewed Quadtel's agreement to republish the latest version of their speech recognition software Dragon NaturallySpeaking 7 have also praised this model's success. Australia is the only country which distributes ScanSoft's products under this business model.
Quadtel is aggressively pursuing opportunities to further widen the scope of its high margin republishing model and is currently in further negotiations with a number of suppliers with specific focus in areas perceived as high growth namely DVD, Digital Imaging and Document Management and look forward to finalising agreements in the coming months.
For Further Information contact: Billy Cina P R & COMMUNICATIONS MANAGER Tel: +61 2 8852 4651. E-mail: [email protected]