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Fronde first-half profit falls 55% on spending to expand in Australia

Tuesday 29th November 2011

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Fronde Systems Group, which sells cloud-based computer services using Google applications, posted a 55 percent drop in first-half profit, even as sales rose, as it spent more to expand in Australia.

Profit fell to $317,000 in the six months ended Sept. 30, from $697,000 in the same period a year earlier, the Wellington-based company said in a statement. Sales rose to $22 million from $18 million.

The company has focused on building its brand in Australia, especially New South Wales and Canberra, said Helen Mills, head of human resources. We are “positioning Fronde as a premium reseller of Google.”

Fronde has been in partnership with Google since 2005, offering cloud computing services, where resources, software and data are stored remotely and accessed via the internet.

The IT company turned to a full year profit of $800,000 in the 12months ended March 31, from a loss of $1.8 million a year earlier, as growing business demand for cloud computing led to a 37 percent surge in sale to $34.2 million.

The shares last traded on the Unlisted platform on Jan. 25, 2008, at 50 cents.

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