RealTime IT News

Datacraft Asia Raises Profits 40 Percent

Singapore-traded networking group Datacraft Asia has reported strong growth for the financial year.

For the year ended 30 June 1999, the Datacraft Asia Group increased its profit to US$21.4 million, an increase of 40 percent over last financial year. The company's revenue rose by 25 percent over last financial year to US$255.4 million and profit before tax jumped by 34 percent to US$27.1 million.

"Even in this turbulent and most difficult of years, the company has benefited from the continuing demand for its technologies and has come through stronger both financially and in terms of competitive positioning," said Des Althorp, chairman of Datacraft Asia.

According to Althorp, business in Singapore and India contributed the highest growth for Datacraft because of continued spending by multinational corporations on their networks as well as the explosive growth of the Internet infrastructure.

"Our service division was the fastest growing business sector, contributing the highest margins," said Althorp.

During the year, Datacraft Asia stepped up its regional expansion through corporate acquisitions and opening two new offices in Japan and Korea.

The company said that it has also developed significant new relationships to better support the development of e-commerce capabilities by enterprise customers across the region, and help service providers meet demand for broadband Internet access.

It also said that initiatives like its Datacraft Services' 24-hour network management center, STARtrac, have paid dividends in terms of strong uptake by companies like Mitsubishi Electric.

STARtrac is also the operational center for Datacraft's Single Point of Accountability service that now covers the regional operations of Lucent Technologies, Proctor & Gamble, Citibank and Singapore Telecom.

"Looking forward, we see continued high growth in the segments we address," said Althorp. "With the economic recovery taking place throughout the region, our recent entry into the major markets of Japan and Korea, and future acquisitions, I am confident that we will be able to double revenues and profits over the next two years.