Revenue was about $263.2 million, an increase of 6.2 percent from last year's corresponding period and was termed a record result. UXC took action to improve profit margins. While it added staff numbers in key areas, the overall number dropped by 42, including contractors. "We are serious about improving margins," managing director Chris Nicolli wrote. He predicted the second half will be much stronger with the acquisitions contributing significantly. In an earnings webcast, Nicolli described UXC's transformation to an IT business through the disposal of non IT operations in the last year. Nicoli described an approach that defines people as an asset (my term, not his). Nicolli did say that IT is a people business. The company also wants to reach larger clients. But it's been a learning experience with almost $4 million in margin "lost from completing delivery, rectifying defects under warranty and ensuring customer satisfaction and reference-ability."
UXC RESULTS HINT AT TECTURA PRICE Featured
Australian company UXC did not reveal the price paid for Tectura North America last year. However, during the six months ended December 31, it paid about $45.6 million for three acquisitions, including Tectura, including cash, deferred and contingent payments. At another point, UXC said it expects Tectura, now part of UXC Eclipse, to add about $43.3 million annually to North American operations. Overall, it was a "satisfactory" half with profits dropping 32 percent from a year earlier to roughly $7.4 million.
