4Front Technologies Inc, the London-based IT services firm, has reported third-quarter net income up 51% at $2.4m on revenue up 75% at $66.1m. Earnings per share for the quarter jumped 43% to $0.20, matching the consensus estimate of analysts surveyed by First Call. For the nine-month period, net income rose 64% to $6.5m on revenue up 98% at $181.7m, while EPS rose 41% to $0.55.
Services revenue for the quarter rose 101% to $46.1m and product sales rose 36% to $19.9m. 4Front says that, through a combination of organic growth and recent acquisitions, it has already exceeded its calendar 2000 revenue run-rate and service/product mix targets of $250m and 75/25, respectively. Thus, the company now projects an annual run-rate of $1bn by 2004.
Separately, 4Front announced that it has sold its computer storage product distribution business, known as Hammer Distribution, to divisional management for $13.4m, including the assumption of debt. The company also said it will invest $15m over the next 18 months to expand its e-business capabilities. Following the Hammer disposal, 4Front becomes a company in which over 90% of its $280m in annual revenues are services based.
