Spectrum Resources - 58% Revenue Increase
Spectrum Resources Reports 58 Percent Increase In Revenue For The Year Ended 30 June 2001
Annual Results Reflect Investment in Kinetiq and Commitment to Growth
* Spectrum Resources' annual revenue for 2001 totalled $2.9 million, an increase of 58 percent over the previous year.
* Spectrum has an after tax operating deficit of $974,244. This reflects the acquisition of Kinetiq and significant investment in the company.
* Spectrum is committed to consolidating its investment strategy around Kinetiq to yield long-term growth for both organisations.
Auckland, Thursday, 23 August 2001 - Spectrum Resources (NZSE: SPE), a software investment company, today announced annual revenue of $2.9 million for the year ended 30 June 2001, with an after tax operating deficit of $974,244. These results reflect Spectrum's acquisition of its key holding, Kinetiq, and significant investment in that company. Revenue from Kinetiq has increased 58 percent this financial year.
Spectrum Resources Chief Executive Gavin Mitchell said that Spectrum has introduced a growth strategy designed to increase shareholder value by consolidating investments around Kinetiq, which he believes will yield sustained growth for both organisations.
Mitchell anticipates significant growth for Kinetiq based on performance so far this financial year and the interest shown in Kinetiq from emerging markets.
"This has been a very active year for us, and Spectrum's annual results echo the strong growth strategy we've put in place for Kinetiq," said Mitchell. "Over the past year Spectrum has acquired Kinetiq, supported its expansion into the U.S. and Australian markets, invested in its development team, and backed its rebranding strategy. The company has expanded rapidly to accommodate growth, with nine new staff spanning three countries."
Spectrum's investment in Kinetiq includes $918,000 in recruitment and operating expenses of international staff, and a further $120,000 to cover marketing activity in Australia and the United States.
"Kinetiq's strong performance over the past year has grown out of Spectrum's ongoing support, and it is now in a good position to continue to expand internationally," explained Mitchell.
Spectrum is holding over $3 million in cash, which will be used to implement Kinetiq's future strategy and in investments that complement Kinetiq's core business.
There will be no final dividend for the 2001 financial year.
Spectrum Financial Summary: * Revenue through Kinetiq increases 58% to $2.9 million * Operating deficit after taxation is $974,256
Kinetiq provides customer management tools for energy companies in deregulated markets. Kinetiq's flagship product, PV2, is a complex contract management and billing software application that energy companies can use to improve their management of commercial and industrial customers. As a mature product, PV2 has few competitors and leaves Kinetiq well-placed to benefit from the increasing international trend towards deregulated energy markets. Kinetiq's main focus for the coming year will be to target American energy companies that want to maximise their competitive advantage in newly deregulated markets. For more information, please visit www.kinetiq.com.
About Spectrum Resources Ltd
Spectrum Resources is a company dedicated to investing in the B2B E-commerce area with particular emphasis on vertical market software. It is a late stage investor that takes majority or control positions in investee companies, adding financial, marketing and management expertise. Spectrum is strongly committed to the development of New Zealand companies and believes in the global potential of the intellectual capital in this country. For more information, please visit www.spectrumnz.com http://www.spectrumnz.com.