Market still weak, says Data#3

Data#3 has forecast weak trading due to "soft and uncertain" conditions.

In a trading update to the ASX, the country's biggest reseller said stalled IT decisions meant trading was not expected to pick up until the second half of 2014.

Chairman Richard Anderson said: "It’s very disappointing that, with continued delays in decision-making associated with IT capital expenditure, the business now appears unlikely to achieve its first half budget. We are currently focused on maximising performance for the current half."

The company has budgeted two-thirds of its annual revenue to come in the second half.

Data#3 has seen a number of wins in recent times, including last week's announcement of an outsourcing deal with Brisbane Airport.

Other new contracts included have AstraZeneca, Worley Parsons, McInnes Wilson Lawyers and Vale Australia.

“However, the delays in some customer investment decisions have resulted in slippage to the second half," said chief executive John Grant.

"As a result, we now expect to generate a net profit before tax for the first half in the range $3.5 million to $4.0 million."

In its most recent full-year results, Data#3 reported a fall in revenue of 5 percent to $771 million and an 11.3 percent drop in net profit $12.1 million.