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."