Operating Performance Upgrade Hansen Technologies Limited (ASX: HSN) today announced improved operating results for the first half year of FY 10/11.
In H1, Hansen Technologies has experienced the impact of the significant appreciation of the Australian dollar.
As a result of our international expansion, 40% of revenue is now derived in foreign currencies. The higher value for the $A means that our total revenue is forecast to be a net $1 million lower than for the previous corresponding period.
However, as a significant part of our cost structure for labour and occupancy is now incurred in those same currencies, we have offsetting cost reductions which, together with ongoing investment in development efficiencies, has allowed us to achieve an improved operating result in spite of the net fall in revenues.
With the $A at medium term historically highs we see this as reinforcing our objective of international expansion through the acquisition of compatible businesses.
The acquisition of NirvanaSoft Inc. in November has raised our company's profile in the USA and we are already seeing increased awareness of our product offerings in that market.
Hansen forecasts the consolidated group operating result for the half year to 31 December 2010, and the comparative with the corresponding period in the prior year, to be: -
Operating revenue - $28 million - a 4% decrease EBITDA - $10 million - a 25% increase Profit before tax - $8.5 million - a 38% increase
(These results are still subject to review by the Companys external auditors).
Hansen Technologies Limited
Grant Lister Company Secretary
HSN Price at posting:
79.0¢ Sentiment: LT Buy Disclosure: Held
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