Netcomm's strong half year results

David Stewart, NetComm’s managing director said the result is continuing proof of the turnaround reported in the previous six months.

“We have achieved this strong result through a deliberate strategy of tight cost discipline and increasing gross margin levels,” he said.

The increase in gross margin resulted from the Netcomm’s initiative to drive a change in product mix – by investing heavily in technologies and services targeted at the small to medium business sector.

“Netcomm expects further increases in revenues as it introduces an innovative range of 3G Broadband Wireless products in the second half,” said Stewart.

According to Stewart, the Netcomm strategy is to grow new recurring revenue streams from services and focus our product development energies on technologies where NetComm’s ability to deliver solutions ahead of other suppliers is valued.

Netcomm’s strategic move in December 2007 to acquire the exclusive Australian rights to Mako Networks was on track and the first customers already in place. This new service – to be marketed as NetAssure.

“This new service allows businesses to simply and safely enjoy the benefits of high speed internet access while maintaining full control over its use. It is a total network management and security system” said Stewart. “The solution is ideal for small to medium sized businesses without dedicated network staff.”

Stewart claimed Mako Networks’ solution had been a success in the New Zealand market in the small to medium business sector as well as with larger enterprises.

The NetComm Board is confident that the positive trend in margin and profit that has been reported in the past two half-year periods will continue and result in further improvements in 2007/2008.