Megabuyte - Technology sector intelligence

Supplier of enterprise solutions to the Retail and Manufacturing sectors K3 Business Technology has reported full year results this morning which show strong organic growth augmented by acquisitions. Results for the year to June show revenues ahead 20% to £43.8m and adjusted PBT up 28% to £6.6m. Organic growth was around 15%. Cash flow was in line with expectations and net debt was £11.0m down from £13.5m at the end of June 2009. K3 shares are up 7% to 126p in early trade. Premium subscribers can read our full review of the results in Newswire Plus.

Norkom warns

Provider of financial crime detection solutions to the financial services industry Norkom has issued a profit warning this morning saying that longer sales cycles and slow progress on regulatory changes in Asia have impacted results for the six months to September. As a consequence of these factors, H1 revenues are expected to be around €22m; down from €24.6m in H1 2010. Moreover, because Norkom had started to staff up for renewed growth, profits will be hard hit by the shortfall and EBITDA is now expected to be no more than €1.5m in the first half compared to €4.5m in H1 2009. Read our first thoughts on the warning in Newswire Plus.

NetDimensions swings to first half loss

NetDimensions, which provides training-related software on a global basis, has reported interim revenues up 11% to $3.38m, but a $400k swing in operating profit to a $70k loss due to increased staff costs to support expansion (headcount went up  from 56 to 73 in the half).  Revenue growth was driven primarily from EMEA. The company believes that increased regulation and compliance requirements will continue to drive growth. NetDimensions has been historically cash generative, but the increased staff costs plus negative working capital and increased investment led to a $1.14m cash outflow in the half, taking net cash to $6.3m.  This net cash equates to 16.7p per share, two-thirds of the 24.5p closing share price.