GDC misses prospectus target

For the year to the end of December the company has posted a profit of just over $3 million - down 6% on the previous year and more than a million dollars below prospectus estimates.

Revenue, at $41.3 million, was 7.7% below the prospectus projection.

GDC says early in the second half of 2000 it experienced a sudden and marked reduction in the levels of sales of business telephone systems for approximately three months.

"This downturn, which appears to have been industry-wide, coincided with a flat New Zealand economy and the announcement of an impending release of new generation telephone systems in New Zealand," the company says in a statement.

"Many GDC customers for new systems elected to postpone their purchases until the reported new-generation system eventually became operational in October."

The company says phone systems sales in November and December recovered to record levels but it was not enough to offset the downturn.

Despite the difficulties the directors say they are confident about the future outlook for the company.

It says the main focus in coming months will be the continuing development of its application service provider brand iVASP, completing the integration of newly acquired Telecom Patch contracts, and maintaining operating momentum.

A final fully imputed dividend of 1.75 cents per share will be paid.

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