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Sirius swings to $970k loss

Sirius swings to $970k loss

Software and services hub company Sirius Corporation (ASX:SIU) swung to a $970,500 loss in 1H11, in a result attributed to a slow-down in government spending.

But in its interim report the company, which reported a $342,500 profit in 1H10, said it was confident that most of the shortfall can be recovered in the second half.

Revenue declined to $2.1 million, from $2.8 million a year earlier, and the cost of goods sold and employment-related expenses also increased significantly.

Directors blamed the slumping revenue on government departments holding off on key decisions over enterprise spending.

But Sirius said its largest subsidiary, InfoMaster, is currently active in over 18 tenders, and has been shortlisted in nine which together are worth $5.7 million.

InfoMaster also attained certified Microsoft Gold Partner status during the half-year, and became the first Australian software vendor to attain Electronic Development Assessment Interoperability Specification (EDAIS) for its MasterView and MasterPlan products, Sirius added.

EDAIS is a standard for the exchange of information between electronic development assessment systems.

Sirius said it felt its SMS division would soon grind to a halt in terms of profitability. The parent will support the unit as long as it continues to turn a profit but has decided not to invest in growing it, the report states.

The company added that it continues to look at M&A opportunities, but acknowledged that shareholders may think “this is an ageing mantra” because it had been saying so for some time.

Although M&A activity has stalled in the past 18 months, the company said, it had conducted many reviews of potential targets over this time.

Sirius added that its economic outlook going forward was “optimistic,” but did not provide further details.

SIU shares stayed flat on Thursday at $0.020.

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Tags ASX:SIUit servicessoftwarefinancial resultsSirius

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