Recently restructured voice and data technology solutions provider Tennyson Networks has reported an increase in sales revenue and a decrease in loss after tax during the half-year.
Sales revenue for the half-year increased by 15% to $1.15 million, in what the company described as ”a difficult trading environment”.
In line with company forecasts, Tennyson’s loss for the half-year was reduced from $2.1 million to $1.7 million.
The improved performance comes after an 18-month period of restructuring, including the appointment of a new chairman and independent directors.
The company has also has been on the acquisition trail.
Earlier in the year, Tennyson announced it would purchase Ericsson’s Data Services business, allowing the local company to expand internationally rapidly.
”It is expected that, in a single stroke, this will turn Tennyson into a significant business operation with annual revenues of approximately $30 million, strong cash flow and profitability, as well as a vastly more diversified product range and revenue stream in aligned businesses,” said Tennyson chairman Harvey Parker.
Ericsson’s Data Services business designs, markets and supports a range of high-speed broadband Internet products for international markets. Over the past three years, the business has generated more than $100 million in international sales.
”For Tennyson, this is a low-risk and highly exciting opportunity because the end sale price is linked to success. It’s a structured purchase. The initial cash outlay is expected to be between $1 million to $1.4 million. The balance of the purchase price will be linked to the ongoing sales,” Parker said. Natalie Apostolou
