IDEAS International Anticipates Healthy Profit Growth for 2009
December 16, 2009 – Sydney, Australia
Ideas International (ASX:IDE), the leading global supplier of actionable comparative intelligence on enterprise IT infrastructure, wishes to advise the market of its expected 2009 full-year performance.
Based on expected sales between now and 31 December, IDEAS anticipates a profit after tax of between $850,000 and $950,000 for the year ending 31 December 2009.
“This is an expected improvement of between 85% and 106% over the $472,000 adjusted* profit after tax for the corresponding period last year” said Stephen Bowhill, CEO. “Earnings for this year have also been lifted by the remission of $238,000 in General Interest Charges levied by the Australian Taxation Office on Franking Deficits Tax outstanding from the 2003 and 2004 financial years. Notwithstanding these positive one off impacts on 2009, the final result will be a very pleasing one, achieved in a challenging and unpredictable market. We are delighted to be showing an improved profit performance over last year. Despite the challenging market, exchange rate variability and the risks we mention in our annual report, if we maintain our momentum over the course of 2010, the company should be in a position to resume franked dividend payments to its shareholders.”
With profit after tax of between $850,000 and $950,000 for the full year, after tax earnings arising from the six month period July to December 2009 will be between $443,000 (-3%) and $543,000 (+18%) compared to adjusted* profit after tax of $458,000 for the same period in 2008.
*Terms and conditions of the subscription license contracts have changed over time which had resulted in some subscription license contracts being incorrectly recognised in prior periods. Adjustments have been made to correct the amounts recognised for the half year ended 30 June 2008 and at 31 December 2008. This error had the effect of a $255,390 overstatement of revenue and $255,390 understatement of deferred revenue, a $105,792 understatement of deferred tax assets and overstatement of income tax expense of the same amount, as at 31 December 2008.
About Ideas International (IDEAS)
IDEAS is the leading global supplier of comparative intelligence on enterprise IT infrastructure. Servicing both IT vendors and large-scale IT users, IDEAS products focus on: servers; storage; virtualization and consolidation; and software and infrastructure services. IDEAS online products are backed by expert industry analysts who can also deliver specialized advisory and consulting services.
IDEAS Contact
Stephen Bowhill, CEO
+61 2 9472 7701
stephenb@ideasinternational.com
Media Contact
Spectrum
Communications:
Richelle Gillett
+61 2 9954 3299
richelleg@spectrumcomms.com.au
