Data#3 reassures shareholders following AGIMO tender

The company has moved to quell any potential concern held by shareholders after AGIMO issued the request for tender for the Microsoft Large Account Reseller contract

Data#3 has moved to quell any potential concern among its shareholders after the Australian Government Information Management Office (AGIMO) reissued a tender for a significant contract currently held by the company.

In a statement issued to the ASX, the Queensland-based ICT firm sought to clarify that the Microsoft Large Account Reseller contract, which it has held since 2008, had not “doubled the licensing division’s revenue to $292.8 million in the year it was finalised”.

“We reported in our full shareholder briefings for 2008/09 that the Federal Government contract generated revenues of $81 million in that financial year of a total software licensing revenue of $298.2 million, that is, approximately 27 per cent,” Data#3 chief financial officer, Bren Hill, said in a statement. “Further we explained that, while the contract was significant in revenue terms and presented ongoing opportunity within both Federal Government and other jurisdictions, sales margin was extremely low and not material to the division’s bottom line.”

Data#3 managing director, John Grant, also stated the work completed throughout the contract duration was best practice in software licensing.

“We will have had a four year relationship with the Federal Government by the time this latest extension is completed next year,” he said. “We welcome the opportunity to bid for renewal of the contract and build on the value we have already delivered to the government.”

AGIMO issued the request for tender on 3 November and noted the outcome would likely be a panel of “one or more suppliers accessible by all agencies and any incorporated company over which the Commonwealth or a State or Territory exercises control.

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