Listed IT company Sygnity sees factors that may lead to an increase of its gross margin on sales in coming quarters - these include its backlog, characterised by higher profitability, according to the company's CFO Wieslaw Strak.
He explained that the gross margin's decline to 19.0% in Q1 of the firm's FY 2014 (i.e. Q1 of calendar year 2014) from 20,8% a year before was in line with the company's plans. If it was not for a purchase of a license for one of the firm's products, the margin would amount to around 20.0%, he stressed.
In the entire H1 of FY 2014, Sygnity reported net profit of PLN 8.21mn (up by 0.3% y/y) and EBIT up to PLN 13.70mn from PLN 12.80mn a year before, on sales revenue of PLN 253.97mn, down by 3.2% on the year. Its net profit margin was 3.2%, operating margin - 5.4% and gross margin on sales - 19.8%.
In February, Sygnity's president Janusz R. Guy said that in the middle of its financial year, Sygnity plans to revise its 2013-2015 strategy. Earlier, he did not rule raising margins included in its 2013-2015 strategy. Currently, Guy upheld the strategy.
The strategy, published in 2012, stipulates for the average net profit margin of 4.8% in 2013-2015 (with the financial years starting on Oct 1 of each year) vs. -3.4% in 2010-2012, with average annual revenue of PLN 550mn vs. PLN 534mn in 2010-2012. The average operating margin in 2013-2015 is expected at 6.2%, while the gross margin on sales - at 21.1%.
Sygnity also reported that its backlog for H2 of FY 2014 was up by 75% y/y to PLN 186mn. Guy stressed it secures revenue equal to 92% of last year's total, including 104% of last year's value of contracts in the "public" segment and 96% - in the banking and finances segment.
Top Iranian officials including Supreme Leader Ayatollah Ali Khamenei stopped using the Telegram Messenger messaging application and started promoting domestic alternatives in advance of the April 18 ... more
United Group, a leading multi-play (Pay-TV, Broadband, Telephony, Mobile) operator in Southeast Europe, majority owned by US private equity firm Kohlberg Kravis Roberts (KKR), plans to invest ... more
Chinese electronics giant ZTE Corp on April 17 was forced to halt trading of its shares in Hong Kong and Shenzen after the US slapped it with a seven-year ban on buying American-made chips ... more