Datalex has reported reduced losses of $7.1 million (€5.7 million) last year, down from $20.6 million the previous year, benefiting from rising revenues and cost savings. The travel software firm said that revenues increased by 13 per cent to $29.1 million and said it had signed new contracts with Malaysia Airlines, American Express and Galileo for United Airlines.
Previously, Datalex had indicated that it expected to be back into profitability by the middle of this year but the company is not now giving any guidance to the market on this issue.
Mr Michael Quinn, Datalex executive chairman, said in the results statement that, while the latest announcement "continues the process of getting the company to profitability, the time lag from contract negotiations to revenue generation held back revenue growth".
The latest results show continued pruning of costs, with operating expenses dropping to $18.077 million from $25.168 million in 2002. The operating loss halved to $8.867 million from $17.874 million. As there was a $3 million restructuring charge in 2002 - compared with a $340,000 charge last year - the operating figure may be the best comparison of progress made in 2003.
The loss per share fell to 11 cents from 31 cents previously. The results show that Datalex had net funds of $36 million at the end of last year.
Datalex chief executive Mr Neil Beck stepped down last October. Mr Cormac Whelan was recently appointed as chief operations officer and will work with Mr Quinn, who will continue in his role as executive chairman.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)