Data#3 delivers solid profit and dividend in a difficult market

FY2013 NPAT of $12.1 million, consistent with guidance
Fully franked dividend at the same level as last year

Brisbane, Friday 23 August 2013: Australian business technology solutions leader Data#3 Limited
(ASX: DTL) has announced its results for the year ended 30 June 2013 (FY13).

FY13 financial performance:
• Revenue down 5.0% to $771.0 million
• Gross profit up 2.1% to $122.5 million
• EBITDA down 3.8% to $18.7 million
• EBIT down 8.9% to $16.7 million
• NPBT down 11.5% to $17.5 million
• NPAT down 11.3% to $12.1 million
• Earnings per share down 11.3% to 7.88 cents
• Return on equity of 35.8%
• Strong operating cash flow and balance sheet with no material debt
• Full year fully franked dividend of 7.0 cents per share, consistent with FY12.

Total revenue was down 5.0% to $771.0 million reflecting decreased product revenues partially offset
as services revenues increased by 8.1% to $130.2 million. The reduction in product revenue by 7.2%
to $639.6 million was primarily due to changes in the way some software licensing contracts were

With these changes in revenue, total gross profit is a better indicator of business performance, and this
increased by $2.6 million (or 2.1%) to $122.5 million. Total gross margin increased from 14.8% to
15.9% reflecting improved product margins.

Total Revenue Total gross profit






NPBT decreased by 11.5% from $19.7 million to $17.5 million due to increased investment to support
future growth (expanded premises, new systems and infrastructure to support ‘as a service’ offerings),
and lower interest income compared to the previous year.

In line with the decreased NPBT, NPAT decreased by 11.3% from $13.7 million to $12.1 million. This
represented basic earnings per share of 7.88 cents. Return on equity decreased to 35.8% but
remained a sector-leading result.

Reflecting the company’s strong cash flows and strong balance sheet with no material debt, Data#3’s
directors declared a final fully franked dividend of 3.55 cents per share, bringing the total dividend for
FY13 to 7.0 cents per share fully franked, which is consistent with FY12. The final dividend will be paid
on 30 September 2013, with a record date of 16 September 2013.







Data#3’s Chairman, Richard Anderson, commented that “Data#3 has delivered a solid financial result in
2013 amidst volatile economic conditions and a highly competitive and flat technology market. It
demonstrates the value of Data#3’s extensive market coverage, strong client and partner relationships,
and the continuing relevance of its offerings to ever-changing customer needs.”

“Data#3 has continued to enhance its financial position through diligent management of its balance
sheet and strong cash flows. Consequently we have increased our payout ratio to 89% to maintain a
dividend consistent with the previous year,” he said.

Operational performance

Commenting on the company’s FY13 results, Managing Director John Grant said: “Data#3 has achieved
solid gross profit growth in a period of challenging industry dynamics. With the previously
foreshadowed higher levels of investment in the business, net profit for the 2013 financial year was
below the 2012 result. On balance, we see this as a good outcome in a particularly difficult market,”
Mr Grant said.

Commenting on the outlook for Data#3, Mr Grant said “We see little change in the underlying market
fundamentals in 2014 as our customers continue to balance the tension between the strategic choices
presented by disruptive technologies like cloud, big data and mobility, and their need to maintain the
integrity and security of their enterprise systems, against a tight fiscal environment.

“We have responded to this by restructuring and simplifying our business and this, together with our
capacity-building investments, a competitive range of business technology solutions from product to
cloud, and strong customer and partner relationships position Data#3 well as business conditions
improve beyond FY14. For FY14, our overall financial objective is to at least match FY13’s result.”
Data3 FY13 Results


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