Data#3 boosted by upbeat guidance

IT solutions company Data#3 has flagged a 50-60 per cent increase in 1H profit, sending its share price soaring 12 per cent

Shares in IT solutions provider Data#3 (ASX:DTL) climbed by more than 12 per cent as the company forecast an up to 60 per cent increase in 1H earnings.

Data#3 said it was projecting pre-tax profit of between $10 million and $11 million, a year-on-year increase of 50-60 per cent.

Chairman Richard Anderson said the company was finally seeing increased investment by its customers – particularly domestically - after a long slump caused by the recent turbulent economic conditions.

Managing director John Grant said he cautioned shareholders against projecting the results into the full financial year.

“We have seen some shift in seasonality toward the first half, and we will be incurring a range of occupancy and people related expenses in the second half,” he said.

The caution did little to dampen investors' enthusiasm – DTL shares ended Friday's trading 11.6 per cent higher to $10.830, and at its peak hit a record $10.950.

Data#3 reported full-year profit of $10.9 million in FY10, an 11 per cent increase from the year before.

The company is aiming for FY11 revenue growth beyond the 3.5 per cent to 4 per cent consensus analyst forecasts for the IT services industry.

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