One-offs dent GDC

By Nick Stride

Friday 7th February 2003

GDC Communications' share price this week took a dive back below $1 after the company warned its December-year loss would be bigger than it previously thought.

GDC, a telecommunications services provider which listed in May 2000, said it expected to post a $4.5 million deficit.

It blamed the costs of closing "non-core" businesses and installing a new accounting system. Also to blame is the reversal of $866,000 of revenue booked in the first half. The money came from the sale of iVASP cash flows.

"Rather than forward selling portions of the iVASP revenue streams, the directors now intend that all contracted monthly inflows will be treated as normal revenue as and when received and will be recognised in the financial statements in the periods of receipt," the company said.

It also reported iVASP's business levels were growing steadily "and the reseller partnership with Telecom is expected to contribute very favourably to revenue growth this year."

GDC announced without explanation in December that its chief financial officer, Mike Price, had resigned. His position is being filled temporarily by consultant and former Fisher & Paykel CFO David Henry.

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