Wavenet $884,000 interim net profit; revenues up 88pc 10:44, Thursday, 9 March 2006
Sydney - Thursday - March 9: (RWE Australian Business News) - Wavenet International Ltd (ASX code: WAL) today reported a net profit of $884,141 for the six months to December 31 2005, compared with a net loss of $427,781 for the corresponding period in 2004. The turnaround was primarily due to an 88 per cent rise in revenues to $5.49 million from $2.92 million. Revenue growth was achieved through expanding modem sales during the period, with more than 30,000 combined units of Boomer OEM modems and Wombat vehicle modems delivered in the six months under review, up more than 60 per cent from last year. Basic earnings per share were 1.71c, against a loss of 0.83c. The company has yet to pay a dividend. Other important contributors to the improvement in half-year profitability were higher trading margins reported on sales through the targeting of higher-value markets, following on from strategies outlined at last year's annual general meeting, and returns from the realisation of strategic acquisitions undertaken during the period. At December 31 2005 Wavenet brought to account a substantial fair value profit of $383,000 on a discounted receivable in a local wireless company acquired in July. As a consequence of these activities, and the early signing of two significant orders to Geologic of $3.0 million and NetworkCar for $1.25 million, the company is forecasting strong sales for the remainder of the year on its existing Boomer and Wombat products, and healthy liquidity with which to continue targeting strategic investment and acquisition opportunities. Shares in Wavenet rose 6c to 22c this morning
WAL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held