Datalex losses ease, shares slip
SHARES in travel software company Datalex slumped yesterday despite the company reporting narrowing losses last year.
By the end the company was down 8pc at 23c after cutting its loss before tax by 53pc to $2.1m (€1.49m) and increasing earnings before interest and taxes to $3.1m from $100,000 a year earlier. Revenue fell back to $26.8m. Net cash, considered a key metric for Datalex after it fell by more than $4m last year, increased 6pc to $11.1m.
While 2010 had seen a recovery in the air traffic market, it expected it to be the middle of this year before the market returned to 2008 levels. The company added six customers last year, while product development costs fell by 18pc, it said.
Despite the broadly positive results, challenges remain in the form of "an uncertain global economic outlook and oil price volatility", said company chairman Paschal Taggart.
Davy Stockbrokers' Joshua Goldman said: "Operational efficiencies and lower capital expenditure reflect the mature stage of Datalex's product development. We feel that the company should have significant operating leverage as its product continues to penetrate the market."