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NetComm swings to $400k profit

NetComm swings to $400k profit

Broadband technology company NetComm (ASX:NTC) swung to a profit of $400,000 in the first half.

The company, which supplies gear including wireless broadband modems to telecom operators, also recorded a 196% increase in ebitda for the half-year to $2.6 million.

Pre-tax profit also swung into the black, growing by $1.3 million to $1.2 million.

Revenue was $31.4 million, with sales revenue growing 37% year-on-year. The company said it had achieved growth in both the Australian and international markets.

The company also attributed the strong result to improved margins and cost control.

But income taxes for the period grew to $800,000, from zero in 1H10.

NetComm, which has recently revealed it will sell LTE equipment, said it did not expect this market segment to immediately impact its profitability one way or the other.

But longer term, the company plans to use the technology as a springboard to expand into North America, Europe and the middle East, and to help stimulate continuing growth in Australia.

NTC shares fell 2.27% in Wednesday's trading to $0.215.

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Tags broadbandexpansionfinancial resultsltenetcommASX:NTC

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