NetComm tempts SMB market

NetComm has repositioned itself to provide business products to the SMB market to reduce its exposure to low value, low margin commodity broadband products.

The board of directors at the ASX-listed networking vendor said its new products would be aimed at the SMB market and released in June 2006.

David Stewart, NetComm’s managing director said the board remains confident that the company’s re-positioning strategy is sound and necessary to ensure growth in the business.

“While some delays have impacted our current full year profitability, we believe that the company is well-positioned for further growth in both revenue and profitability in fiscal 2006,” he said.

According to NetComm’s financial statement, the consolidated forecasts to June 30, 2006 indicate that NetComm was likely to post a net loss of approximately $700,000 (about 1 cent per share).

This takes into account the restructuring and merger integration costs of the recently acquired operations of Askey Australia and Dynalink New Zealand, said Stewart.

“The company also expects to have a broad range of its products available to be launched in the New Zealand market in July 2006,” he said.