Engin’s operational restructure helps decrease debt

Engin's VoIP revenie has increased from $14.9 million in 2007 to $19.1 million for the current financial year.

In its preliminary financial report to the ASX for the financial year, Engin claimed its eight months of operational restructure has it close the gap on its financial loss from an earnings before interest, taxes, depreciation and amortisation (EBITDA) of $12.5 million to an unaudited EBITDA of $8.4 million.

Ian Smith, chairman at Engin, told the ASX that its operational restructure activites included a 45 percent reduction of staff numbers from 160 to 88, a review and rationalisation of network infrastructure and marketing plans, processes and strategies.

“I said the company would be going through a period of further restructure in order to maintain its underlying operations, align overheads and staffing more closely,” said Smith. “I am pleased to report that the management team, under the leadership of new CEO, Mark Zworestine, has delivered a successful outcome in regard to this restructure.”

According to Smith, the fourth quarter financial results for 2008 showed increased margins and a reduction in operating expenditure, which has lead to a decrease in EBITDA losses in Q4.

With the company looking at recovering from its financial problems, there are more products to come from Engin in 2009.

“We will continue to delight our customers by introducing new products and services that will include a revamped Website and a new ADSL2+ service,” he said.

“In the second quarter of the 2009 financial year, Engin will launch its ADSL2+ service and it is expected to be margin accretive prior to the end of the 2009 financial year.”

Smith said Engin’s subscriber lines also increased from 77,000 at June 2007 to 88,000 – an increase of 8.6 percent in services in operation.