Datalex’s reports sharp fall in revenue

Irish online travel company Datalex reported a 20 per cent fall in revenue as the global travel industry suffers in the aftermath…

Irish online travel company Datalex reported a 20 per cent fall in revenue as the global travel industry suffers in the aftermath of the September 11th attacks.

The Howth based company also announced further job cuts due to the sharp drop-off in sales of its travel software in the third quarter. The company said its workforce will be cut to 267. Earlier this year the company employed a total 462 people worlwide.

Commenting on the results Datalex chief executive Mr Neil Beck "This has clearly been a disappointing quarter for us, and it is evident that the events of September 11th in the United States have further damaged an already distressed economy."

Mr Becj added "We must not disregard the fact that there has been 44 per cent growth in online travel revenues from September 2000 to September 2001 and that travel is still the number one revenue generator, accounting for nearly 25 per cent of online spending.

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"Though we remain cautious about our revenue prospects for the next two quarters, we are confident of the company's fundamental business model and strategy."

A restructuring charge of $1 million has been taken during the quarter as a result of previously announced employee terminations and facilities closures.