Datalex profits up despite its fall in revenues

25 Aug 2006

Irish travel technology firm Datalex this morning reported profits of US$1.6m for the first half of 2006.

However, revenues of US$12.4m were down compared with US$14.4m in the same period last year.

Revenues in the company’s e-business division were US$8.9m compared with US$11.5m last year. However, revenues in the company’s consulting unit were up to US$3.5m compared with US$2.9m last year.

Gross margin declined to 26.6pc due to the predicted decline in e-business revenues as well as an increased cost of sale.

The company’s chief executive Cormac Whelan said the company will be maintaining its focus on providing airlines with new technology but will be expanding its R&D efforts to support its leisure-based solutions.

“We have made considerable investment in the airline functionality of our product suite over the last 18 months and are expanding our development to productise our ‘leisure’-based solutions,” said Whelan.

“This focuses our efforts on expanding our functionality in the dynamic packaging and hosted price and inventory areas.

“As airlines and travel companies become more strategic about developing alternative distribution and revenue channels this becomes an important part of their infrastructure,” Whelan added.

By John Kennedy