Turnover up but profit down at ISA

TURNOVER at software group ISA has for the first time passed the R60m mark on demand for software security products.

Turnover for the year ending February was R63m from R59m. ISA said on Friday the key drivers of the IT security market remained robust.

“The positive momentum of our internally developed Mssregistered Pulse security infrastructure monitoring and management products continued through the period, and has given management the confidence needed to increase their investment in their development initiatives.”

The revenue received from these products has already exceeded the cost of the development, it said. However, income from customers “north of our borders continues to disappoint and is expected to remain at low levels for as long as the group maintains its cautious risk profile.”

Earnings per share and headline earnings per share both contracted by 2,8% to 7c per share.

Earnings before interest, tax, depreciation and amortisation declined 2% to R19,3m and profits fell 5% to R12,9m. During the year to February, ISA completed the final leg of its black economic empowerment transaction with Empowergroup.

Giving its outlook for the 2013 financial year, ISA said security remained a cornerstone for businesses, which should create opportunities for the group in other areas of the information communications and technology market, “as customers are giving more priority to their need for a secure converged information and communication framework”.

“The key drivers of the IT security market remain robust and we are well positioned to benefit from this,” ISA said.