From YMW: 3/12But given the slow start of a number of contracts,...

From YMW: 3/12
But given the slow start of a number of contracts, costs associated with the Canon mobilisation and Fuji Xerox Australia (FXA) legal costs, 1H11 NPAT is likely to be 40% of the full year forecast as opposed to a normal 45:55 split

Despite the one-off costs the acquisitions are generally performing in line with expectations, although 1Q11 volumes were a little lower than expected. The FXA termination of the Brisbane dealership and related court case is unlikely to have a material impact on earnings and CSV has already been selling in Brisbane to add to the established 1,400 machines-in-the field (MIF). This will go some way towards offsetting the impact of any FXA clients choosing to leave CSV.


There has been no further decision on the issue of damages in relation to the FXA case and CSV is still considering whether to appeal. Assuming damages are not significant, CSV would probably be better off not appealing and in order to avoid the distractions and costs of a prolonged legal battle.