By PETER GRIFFIN
IT integrator Infinity Group is finally in the black, turning a profit of $124,000 for the six months to June 30 after nearly two years of painful restructuring.
One of the mid-sized local IT companies, Infinity had revenue of $32.4 million in the first half of the year. That
was a drop of $10 million on the previous six-month period, as lucrative long-term contracts came to a close and revenue from software division Quanta Systems dried up.
Quanta was sold this year and Infinity also sold a 50 per cent stake in software subsidiary Vista Entertainment Solutions to the division's management after the period to June 30. It will book the $2.25 million from the sale in its full-year accounts.
Formed with the merger of IT companies Madison, Trilogy and Comtex in 2000, Infinity struggled to incorporate the differing cultures of three distinct businesses.
Despite that, its investors have hung on for the slow climb to profitability.
Infinity's shares trade on the unlisted securities market. On the way to breakeven, Infinity has accumulated losses of nearly $48 million.
Infinity chief executive Stuart Robb said the June 30 result was an important milestone. "Hallelujah. It's a step towards better things."
The shedding of business units, and job cuts, had allowed Infinity to cut costs to the tune of $11 million.
Several software divisions have now been offloaded as Infinity concentrates on its core IT integration and consulting businesses.
