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Ideas International lifts earnings and boosts revenue by 62 per cent in June half-year results

  • 19 August, 2004 16:01

<p>SYDNEY, August 18, 2004 – Ideas International Limited (ASX:IDE), the Australian export success story that holds a global leadership position in comparative research on IT products and generates almost all of its sales overseas, today announced a 62 per cent increase in half-year revenue and a significant turnaround in profitability.</p>
<p>The company’s total revenue from all sources of $3.7 million at 30 June 2004 was up 62 per cent on that for the half-year period to 30 June 2003. More than 97 per cent of revenue was sourced from outside Australia, with the North American and European markets representing the major source of sales.</p>
<p>The result was boosted by the company’s January acquisition of Connecticut-based D.H. Brown Associates Inc., a well-established technology research firm that added approximately $1.3 million to the company’s sales for the half year to June. Incremental growth and profitability in the traditional Ideas International business unit was also achieved.</p>
<p>Ideas International’s earnings before interest tax depreciation and amortisation (EBITDA) for the six months to 30 June 2004 were $555,078, representing a turnaround of $877,851 from the negative $322,773 reported for the half-year to 30 June 2003.</p>
<p>Managing Director of Ideas International, Mr Ian Birks, said: “Our half-year financial performance represents a significant turnaround for the company and is all the more notable given that foreign exchange adversely impacted our revenue terms of trade in this period by approximately 20 per cent compared to the half-year to 30 June 2003.”</p>
<p>Ideas International sells comprehensive data on IT equipment and services, and related advisory services, to leading technology suppliers and purchasers. Its customers include vendors such as Dell, EMC, Fujitsu, HP, IBM, Microsoft and Sun. Their advisory services are also used by a significant number of major end-user purchasers around the globe.</p>
<p>Revenue generated from research subscriptions was approximately 78 per cent of sales, with custom research and consulting activities producing the remaining 22 per cent. Subscription revenue rose 52 per cent and custom research and consulting revenue was up by 135 per cent compared to the period to 30 June 2003.</p>
<p>“The market is responding positively to our new positioning as the global leader for comparative evaluation of IT infrastructure products and services,” said Mr Birks. “Our high degree of research focus and our unmatched analyst capability in this area following the D.H. Brown acquisition is proving to be a good place to be with the gradually improving levels of investment and confidence that we are witnessing in the wider industry.”</p>
<p>Ideas International plans to continue to pursue growth through prudent acquisition activity, most likely in North America or Europe.</p>
<p>- ends -</p>
<p>Notes to editors:</p>
<p>All figures are in Australian dollars.</p>
<p>Ideas International has changed its financial reporting period from a June 30 year-end to a December 31 year-end to be in line with its predominantly USA-based customer buying cycles. These are the first results to be announced under the new year-end.</p>
<p>About Ideas International</p>
<p>Established in 1981, Ideas International is an Australian publicly listed IT research company (ASX:IDE) offering unique services for the technical evaluation of computing infrastructure technologies. The company’s research and services span a broad spectrum of professional solutions, including systems software, computing platforms, operating systems, middleware, storage and database technologies. Ideas International serves the global market through business units operating from Sydney, the UK and the US. It counts many top 100 global companies as customers, including all of the top 10 IT infrastructure vendors.</p>
<p>For further information:</p>
<p>Ian Birks Lachie Hill
Managing Director Public Relations
Ideas International Limited Lachie Hill Communications
Tel: +61 (2) 9472 7702 Tel: +61 (2) 9953 5629
Mobile: +61 408 641 122 Mobile: +61 411 113 445
Email: ianb@ideasinternational.com Email: lachieh@bigpond.net.au</p>

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