Clarity OSS reports improved half year results

Company posts revenue of $14.1 million

Unified communications provider, Clarity OSS (ASX: CYO), increased its revenue by 61 per cent for the half year ending 31 December 2011.

Revenues from continuing operations for the six month period increased to $14.1 million compared with $8.7 million in 2010. The company also recorded positive earnings before interest, tax depreciation and amortisation (EBITDA) of $600,000. In 2010, Clarity posted an EBITDA loss of $5.6 million.

Expenses from continuing operations, excluding finance costs, reduced to $13.7 million compared with $14.5 million last year as the business continued to monitor operational expenses.

The company’s profit for the period was $5.7 million after a loss in 2010 of $4.6 million. This took into account the profit from discontinued operations, including the gain on disposal of ConverterTechnology and IMX Software of $6.6 million, net foreign exchange gains of $200,000 and finance costs of $1.6 million.

Debt to Clarity's majority shareholder, CPS, had reduced to $18.3 million at the end of December 2011, following the completion of the sales of ConverterTechnology and IMX Software.

Clarity chief executive, Jon Newbery, said in a statement that the improved financial performance was the result of a number of factors including the implementation of a partner-led model for signing new business and an increased proportion of revenues derived from licence sales.

“With the orders success achieved in the first half of the year, where total orders exceeded $60 million, the business is well placed to show continuing top line growth in the second half of the year, along with operational profitability as the new projects are delivered and the associated revenue is recognised,” he said.

Follow Hamish Barwick on Twitter: @HamishBarwick

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