DataMotion Asia-Pacific (ASX:DMN) widened its losses 18% to $858,000 in 1H10, due to slumping revenue.
The company said revenue fell 72% to just $72,000 during the reporting period, as the economic downturn lengthened the sales cycle within large organizations.
A Gartner survey has shown that 42% of CIOs worldwide cut their IT budgets in 2009, DataMotion said, causing significant delays in capex. This has meant that sales revenues are taking longer to realise.
The company said it had since arranged for an EGM in response to a request from Intercorp proxy Robert Roget to hold a vote on whether to remove its chairman, managing director and CFO.
DataMotion has been reinstated to public trading after submitting its financial results. The company had been suspended by the ASX for failure to lodge them on time.