Sales by airline industry software supplier Datalex fell by almost half to $5.5 million (€6.28 million) in the fourth quarter of 2001 compared with $10.8 million a year earlier. The weak performance was in line with market expectations in light of the slump in the airline sector following the September 11th terrorist attacks in the US.
Analysts also highlighted low licence revenues at Datalex and a fall in gross margins to 20 per cent during 2001, down from the 25 per cent recorded in 2000.
But Mr Neil Beck, Datalex chief executive, forecast recovery for the travel sector. This would strengthen demand for the firm's products as travel firms sought to reduce distributions costs, he said.
Datalex reported a net operating loss of $5.6 million during the quarter, a substantial decrease on the $8.3 million lost in the previous quarter, following the introduction of cost-cutting measures.
The firm said it had now fully implemented a restructuring programme, part of which was announced in the wake of the September 11th attacks.
Datalex has now reduced staff numbers to almost 250 people, almost half of the company's total workforce reported during 2001. Additional redundancy costs of $900,000 were taken during the fourth quarter against initial estimates of $600,000 by the firm.
Datalex said it had also taken a further $5.4 million charge on its investment in Yatra, a US-based joint venture, due to a decline in cashflows at the business in 2002. The firm said it was working with Yatra management on a revised business plan for 2002, which would likely integrate Yatra's activities more closely with Datalex. Datalex purchased a 50 per cent stake in Yatra in November 2000 for $11 million.
