Great announcement by Senetas today.. Profitable and no debt.....

Great announcement by Senetas today.. Profitable and no debt.. With a healthy growing pipeline of security opportunties OS and in Australia, this stock is very cheap at the current prices....



Senetas delivers $3.2 million maiden profit
§ 25% increase in revenues to $16.46 million
§ Cash position strong with $3.1 million; Senetas debt-free
§ CTAM Pty Ltd now a wholly-owned subsidiary
§ Well placed to maximise growth opportunities in FY05
Australian enterprise information solutions company, Senetas Corporation Limited (ASX: SEN),
has announced its first full year profit of $3.2 million for the financial year ending 30 June 2004,
representing a $7.6 million improvement on the previous corresponding period.
Total revenues increased by 25% for the year, to $16.46 million, while operating revenues
increased by 12.6%, to $14.75 million.
Seventy four percent of operating revenues were attributable to the professional services division
of Senetas, with the 26% balance coming from the security product division. Underlying EBITDA
from operations was $2,965,578 representing a 20% operating margin on operating revenues.
The net profit of $3.2 million is made up of Senetas Group profit of $4.1 million, less $821,000 of
outside equity interests (OEI) in the now wholly owned security company, CTAM Pty Ltd. The OEI,
up until the acquisition of CTAM, is taken out of the group’s result for financial reporting purposes.
Senetas Chairman and Group CEO, Francis Galbally, said the delivery of a maiden net profit is the
result of Senetas remaining focused on its core businesses of security product, enterprise
management and business intelligence.
“Senetas has delivered its strong result through an unwavering commitment to its specialist area of
business and a focus on delivering the best information technology solutions to our loyal and
diverse customer base,” Galbally said.
“In July 2004 we announced some $5.2 million in sales, meaning Senetas is now extremely well
placed to maximise growth opportunities and return another strong performance for the coming
financial year.
“We have great confidence in the potential of the company going forward and the growth of the
security products division should see revenues almost evenly split with our professional services
division in the future.
“The board will release a statement during September providing further financial guidance for the
current financial year, however with the greater margins in the sales of our intellectual property
owned security products, Senetas’ operating margin is expected to rise to above 25% to 30 June
2005,” Galbally added.
Strong Financial Position
The company’s cash position is strong with $3.1 million in cash at 30 June 2004. In addition,
accounts receivable exceeded accounts payable by $1.1 million as at the 30 June 2004. Net
assets have doubled during the year from $6.3 million at 30 June 2003, to $12.7 million at 30 June
2004. The Group has no debt.