Software company Finzsoft, subject of a partial takeover offer, today released a draft version of its March year result showing an 80 per cent slump in net profit.
Revenue fell to $7.4 million from $7.8m and draft earnings before tax fell to $240,000 from $1.2m.
In April, PiCapital Investments bid for 63.6 per cent of the company at $1.30 per share -- a 24 per cent premium to the prevailing price.
Pi has secured a lock-up agreement with Software Laboratories and Bogside Trust which own 44 per cent and 19 per cent respectively.
Finzsoft said new marketing efforts had concentrated in Australia in the 2006/7 year, with a significant investment being made in achieving market presence there.
It said the desired results were starting to flow in the 2007/8 year.
Finzsoft is aiming to lift revenue to $11.6m and earnings to $1m before tax.
The directors noted international software projects, involving core business finance and banking decisions, had a long lead time.
"The nature of the software market makes it difficult to project with accuracy future financial performance, but our sound results to date give confidence in our staff and management achieving the planned growth."
In April, Finzsoft issued a profit warning saying a delay in concluding new finance contracts had affected its March year result.
The company operates software for finance institutions that lend money or take savings and deposits.
The target company report and independent assessment of Pi's offer are expected to be released today.
