In the fourth quarter of 2007, Sygnity, the IT group with headquarters in Warsaw, had PLN 43.05m of net income against PLN 15.6m of loss a year earlier.
“This was the first quarter showing the effects of restructuring program implemented in September 2007”, Piotr Kardach, who has been Sygnity CEO since the middle of last year said.
Part of the result was generated by selling Sygnity’s medical business for PLN 27m.
In the October-December period, Sygnity had PLN 55.6m of operating income against PLN 56m of forecast. Sales amounted to PLN 392m and were 8 percent lower than planned.
“The reason for that is the fact that public tenders were delayed”, the CEO explained.
He promised that it would be made up this year.
“The fourth quarter report is in big part what the management had promised. It is positive and shows that the restructuring program under implementation starts to work. This is good news”, Piotr Janik, DI BRE Bank analyst commented.
Despite good last quarter, in 2007, the group had PLN 65m of net loss. In Autumn, it had financial problems, started to sell out its assets and received PLN 30m from investors who bought the new issue.
“The main pillar of the restructuring is connected with cutting jobs and selling non-core businesses. It should be concluded in the first quarter. We want to cut costs radically, improve profitability and found fundamentals for long-term growth”, Piotr Kardach said.
The company has cut costs by PLN 14.5m and is laying off 365 people.
(PLN 1 = EUR 0.281)