IT services company One1 Software Technologies Ltd. (TASE: ONE) today published its consolidated financial report for the second quarter of 2007, which includes the results of subsidiary One1 Systems Integration Ltd. (TASE:ONSM-L). One1 Software posted NIS 118.6 million revenue, up 81% on the NIS 65.5 million for the corresponding quarter of 2006. Excluding the consolidation, which followed the restructuring of the One1 Group in September 2006, One1 Software’s revenue was unchanged at NIS 65 million.
High marketing and sales costs continue to weigh down on One1 Software. The company posted an operating profit of NIS 8.5 million for the second quarter, up 10% on the corresponding quarter. However, the operating profit margin narrowed to 7.1% of revenue for the second quarter from 11% for the corresponding quarter.
Net profit nevertheless rose 60% to NIS 4.9 million for the second quarter from NIS 3 million for the corresponding quarter.
One1 Software had NIS 58 million in cash at the end of June, which the company is using to make acquisitions overseas. The company began entering Eastern Europe in 2005. In July, the company increased its stake in Bulgarian IT services company Stanga Ltd and it acquired half of Romanian IT services company Wizrom.
One1 Software CEO Udi Weintraub says, “We were the pioneers in expanding into Eastern Europe.”
Published by Globes [online], Israel business news - www.globes.co.il - on August 28, 2007
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