Half Year Results
Released 3 February 2001
For the six-month period to December 2000, Prophecy International
Holdings Limited reported an increase in sales revenues to $4.0m
(up 65% on the comparative period). However the revenue recorded
was below the company's internal targets, and the company suffered
a modest loss after tax of $1.6m for the period.
The company has traditionally experienced a weaker first half compared
to its second, and in the second half of last year the company produced
a record revenue result. The company is well placed to earn significant
revenue from its ongoing major contracts in the six months to June
2001. In addition the company has received a healthy level of interest
from potential customers in its e-Foundation solution which it is
anticipated will translate into revenue in the next six months.
The directors are therefore confident that Prophecy will return
increased revenue for the full year, and deliver a profitable result.
For the six months ended 31 December 2000 Prophecy International
Holdings Limited reported sales revenues of $4.0m (an increase of
65% on the comparative period), and an operating loss after tax
of $1.6m (an improvement of 42%)
The directors have resolved that no interim dividend will be declared.
The company has been cash positive in the half year, and has cash
balances in excess of $11m as at the end of December 2000. The company
is therefore well placed to take advantage of the opportunities
in front of it in the second half of the financial year.
RESEARCH & DEVELOPMENT
The company continues to develop a JAVA version of its software,
and development to date has been very promising.
Prophecy has been engaged in a major new research and development
initiative to produce a JAVA version of its unique Framework Rapid
Application Assembly product. Significant progress has been made
on this development with the result that the new product will have
key additional functionality. This we believe will substantially
expand the potential market for our product, paving the way for
substantial revenue growth.
SALES AND MARKETING
As previously announced, the value of sales opportunities in progress
at the half year was more than double that of the comparative period
last year. Prospects in the North American marketplace are particularly
healthy and as a result our direct sales resource in the territory
is being expanded to cover the West Coast and the North East regions
so that maximum benefit can be derived from the very large sales
opportunities that are available in the Northern Hemisphere.
Our objective is to cultivate growth both through the continued
expansion of our direct sales force and through the appointment
of new partnerships. In this regard Prophecy is investing in new
marketing activities to raise the profile of the company and trumpet
the considerable benefits of its unique e-Foundation offering.
The Board is committed to expanding the sales and marketing activity,
particularly in the Northern Hemisphere to fully realise the revenue
potential of our products in both the short and long term. A significant
commitment to research and development has been made in the production
of our new JAVA Framework product that will take its place in our
These investments are set to increase significantly the available
market for our products, which we understand to be unique in their
capabilities. The growth potential therefore is believed to be very
The Board anticipates that, given sound trading conditions in the
company's major markets and success in the company's current sales
activities, expected growth over the previous full year's revenue
will be achieved.