Datalex cuts its losses

20 Feb 2003

Dublin-headquartered travel software firm Datalex has recorded cuts in pre-tax losses of US$72.2m – down to US$20.6m in 2002 from US$92.8m in 2001.

The figure for 2001 included a restructuring charge of US$44.8m.

The company’s operating loss before goodwill amortisation and the charge for share awards to employees dropped from US$29.4m in 2001 to US$11.2m in 2002.

Operating expenses before goodwill amortisation and the charge of share awards to employees reduced from US$35.1m in 2001 to US$18.5m in 2002.

Datalex had a net cash balance on 31 December, 2002 of US$39.1m.

Chief executive of the company Neil Beck (pictured) said: “The results were in line with expectations and demonstrate the impact of ongoing fiscal management strategies in a market that has suffered under the effects of a negative economic and geo-political environment.”

He added: “We expect the improvement which we have seen in our business during the second half of 2002 to continue in 2003. As a result, subject to no further deterioration in economic conditions we are confident that we will generate positive operating cash flows in 2003.”

The company has signed a number of high profile deals in the past number of months, including agreements with American Trans Air, and Saudi Arabian Airlines for their online booking services.

By Suzanne Byrne