Mike Fairclough, managing director and CEO of Software developer Stratatel (ASX:STE), has stated that the company expects a return on investment from its recent development spending by Q410.
In a company update for shareholders, Fairclough said the heavy investment on growing its business had a short-term impact on 1H earnings, resulting in a decreased interim dividend of 0.13 cents per share.
“I understand you may be disappointed in the reduction of dividend to be paid,” he told shareholders, “however I am confident that as we grow, we will achieve larger earnings with greater rewards for shareholders.”
The company is making gains from its recently acquired Stratatel Resource business, Fairclough said, with a strong pipeline of IBM software licenses and service opportunities.
Stratatel is in a strong cash position, with $1.43 million at hand as of the end of last year, he added.