Ideas International Limited (IDEAS) Reports 76% Increase in Profit after Tax
Sydney, Australia – February 26, 2010
Ideas International (ASX:IDE), the leading global supplier of actionable comparative intelligence on enterprise IT infrastructure, today released its 2009 full-year results.
"We are pleased to present profit after tax of $997k for the year to 31 December 2009. In addition we have increased our working capital by 62% to over $3.2 million and have increased total income by 1.2% to $6.945 million" said Stephen Bowhill, CEO. "The earnings result is ahead of the upper end of previous guidance and 76% ahead of the restated result (1) from 2008. Given the overall difficult economic conditions for 2009 we are very pleased with this result. Additionally, the group was cash flow positive for the year, with net cash provided by operating activities of just over $1.0 million, and we expect the small amount of bank debt we have remaining to be repaid as planned in November 2010."
"We continue to see strong interest in our services from major IT infrastructure vendors and we have signed a few newer, smaller storage providers to our client list. Additionally we are winning new clients globally for the Server CAR consolidation service, a modeling tool for developing a business case for server consolidation studies. We expect to see increased interest in this service in 2010 and hope that our distribution deal with Current Analysis in the USA will show signs of success in distributing Server CAR and Competitive Profiles."
"We are now building strong online platform services with the Server CAR and the new modules for inventory import that we added late last year, and given the potentially scalable nature of Software-as-a-Service (SaaS) businesses with their low-cost of deployment we expect to able to deliver a similar profit number in 2010" said Bowhill. "We look forward to advising our investors at the AGM of the potential growth in our client base, any successes from our distribution arrangement with Current Analysis and the advancement of our product strategy particularly with regard to green IT, IT efficiency, business partners and end user corporate clients."
(1) Restatement 2008
Terms and conditions of IDEAS customer contracts have changed over time which has resulted in some subscription license contracts being incorrectly recognized up-front in prior periods. Adjustments have been made to correct the amounts recognized as 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, and an overstatement of retained earnings of $149,598 as at 31 December 2008.
About Ideas International (IDEAS)
IDEAS is the leading global supplier of comparative intelligence on enterprise IT infrastructure, with offices in Sydney, London, and New York. 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.
Media Contact
Spectrum
Communications:
Richelle Gillett
+61 2 9954 3299
+61 4 2180 8292
richelleg@spectrumcomms.com.au
Forward-Looking Statements:
This press release contains forward-looking statements including expectations for Ideas International’s 2010 full year fiscal performance and profit after tax improvements as well as reference to global regulations regarding carbon output and interest in related Ideas International products and services, that involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in this press release. Any statement not a statement of historical fact is a forward-looking statement, including without limitation statements concerning demand for and benefits of Ideas International products and integration of its products with existing solutions. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Ideas International takes no responsibility to update any forward-looking statements.
