1. Most Discussed
  2. Gainers & Losers
SNX 0.0¢

letter to shareholders

  1. Jordi

    237 Posts.

    14 January 2003
    Part 1/1
    HOMEX - Melbourne
    Letter to Shareholders - Update for 2003
    The first half of fiscal 2003 has seen SecureNet deliver a
    significantly improved operational performance in all aspects of the
    business. I am writing to you as a SecureNet shareholder to give you
    some insight to this achievement, as it will be another month until
    we complete and lodge our financial statements. These financial
    statements will demonstrate significant earnings improvement in first
    half of 2003 over the previous six months and the previous
    corresponding period. We are currently on track to double last year's
    revenues and achieve a full year EBITDA break even.
    SecureNet is now consistently winning and delivering major projects,
    especially in the Government sector. This includes such new business
    as a secure message authentication framework to protect critical
    operational communications for the Australian Defence Force, the
    public key infrastructure (PKI) and services required for Australian
    Customs' new online import/export system, and an Intranet and
    Internet Web Portal System for the Australian Competitor and Consumer
    Commission (ACCC). This improved performance reflects the enhanced
    capacity and leadership in the sales and delivery teams coupled with
    strong customer security requirements in their online businesses.
    Also during the period, we completed the successful integration of
    the June 2002 acquisition of Baltimore Technologies' Australian and
    New Zealand operations. This acquisition is delivering the projected
    $5 million per annum plus productivity and synergy benefit stemming
    from initiatives such as staff downsizing, consolidation of
    facilities, and renegotiation of supply contracts. Further, the
    complementary nature of the acquisition has begun to deliver
    synergistic opportunities within our existing customers.
    Our quality of revenue has improved in that a significant percentage
    of revenue for the period to date is now in the form of annuity-based
    services, such as Trust Services and licences. This annuity revenue
    will increase. In addition, we are establishing a more diverse
    customer base as we gain clients from the manufacturing, retail,
    transportation, utility, health and telecommunications sectors.
    The now solid operational base of the business coupled with the
    increased security requirements across all of our customers means
    SecureNet is well placed to achieve strong growth through both
    organic, technology licences and acquisition initiatives.
    With cash holdings in excess of $70 million at 31 December 2002, we
    will provide working capital to significantly grow the business
    organically and fund further synergistic earnings positive
    acquisition opportunities. At times where many technology company
    valuations are low, your Board is seeking to utilise this cash for
    acquisitions using a series of rigorous criteria to ensure value for
    Your Board of Directors are very positive about our company's
    prospects and look forward to an exciting period of activity.
    D Greatorex AO

Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.